Announcement on Relevant Policies for Deepening Value-Added Tax Reform
Announcement on Relevant Policies for Deepening Value-Added Tax Reform
Announcement on Relevant Policies for Deepening Value-Added Tax Reform
Announcement of the Ministry of Finance, the State Taxation Administration and the General Administration of Customs [2019] No.39
March 20, 2019
In order to implement the decisions and plans made by the Central Committee of the Communist Party of China and the State Council and promote the substantial reduction of value-added tax (hereinafter referred to as "VAT"), matters concerning the VAT reform in 2019 are hereby announced as follows:
Article 1 With respect to VAT taxable sales or imported goods of a VAT general taxpayer (hereinafter collectively referred to as "taxpayers" and individually as "taxpayer"), where the VAT rate of 16% applies currently, it shall be adjusted to 13%; the currently applicable VAT rate of 10% shall be adjusted to 9%.
Article 2 With respect to agricultural products purchased by a taxpayer, where the deduction rate of 10% applies currently, it shall be adjusted to 9%; with respect to those purchased by a taxpayer for the production or consigned processing of goods subject to the VAT rate of 13%, the input VAT shall be calculated as per the deduction rate of 10%.
Article 3 With respect to goods and services for export to which the export VAT rebate rate of 16% and the VAT rate of 16% apply currently, the export VAT rebate rate shall be adjusted to 13%; with respect to goods for export, cross-border taxable transactions to which the export VAT rebate rate of 10% and the VAT rate of 10% apply currently, the export VAT rebate rate shall be adjusted to 9%.
Prior to June 30, 2019 (including prior to April 1, 2019), where a taxpayer exports goods or services or carries out cross-border taxable transactions referred to in the preceding paragraph, to which the measures for VAT exemption and rebate apply, if the VAT has been levied thereon at the time of purchase as per the pre-adjustment rate, the pre-adjustment export VAT rebate rate shall apply, and if the VAT has been levied thereon at the time of purchase as per the adjusted rate, the adjusted export VAT rebate rate shall apply; where the measures for VAT exemption, offset and rebate apply, the pre-adjustment export VAT rebate rate shall apply; when calculating the VAT exemption, offset and rebate, if the applicable VAT rate is lower than the export VAT rebate rate, the difference between them shall be deemed to be zero and included in the calculation of VAT exemption, offset and rebate.
The implementation time of export VAT rebate rate, the time of exporting goods and services, and that of carrying out cross-border taxable transactions shall be subject to the following provisions: with respect to goods and services exported upon a customs declaration (except those exported in or through bonded areas), the export date indicated on the customs declaration form for export shall apply; with respect to goods and services exported without a declaration and cross-border taxable transactions, the issuing time of export invoices or general invoices shall apply; with respect to goods exported in or through bonded areas, the export date indicated on the record list of exit goods issued by the Customs at the exit port shall apply.
Article 4 With respect to departure-VAT-rebate goods purchased by overseas passengers subject to the VAT rate of 13%, the rebate rate of 11% shall apply; with respect to those subject to the VAT rate of 9%, the rebate rate of 8% shall apply.
Prior to June 30, 2019, where the VAT is levied as per the pre-adjustment rate, the pre-adjustment VAT rebate rate shall apply; where it is levied as per adjusted rate, the adjusted VAT rebate rate shall apply.
The implementation time of VAT rebate rate shall be subject to the issuing date of general VAT invoices for the VAT-rebate goods.
Article 5 As of April 1, 2019, Item 1, Paragraph 4 of Article 1 and Item 1, Paragraph 1 of Article 2 of the Provisions on Matters Relating to the Pilot Program of Collecting Value-added Tax in Lieu of Business Tax (issued as Cai Shui [2016] No.36) shall be annulled, and the input VAT levied on a taxpayer's acquisition of real estate or real estate project in progress shall be no longer subject to offset for two years.
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Announcement of the Ministry of Finance, the State Taxation Administration and the General Administration of Customs [2019] No.39
March 20, 2019
In order to implement the decisions and plans made by the Central Committee of the Communist Party of China and the State Council and promote the substantial reduction of value-added tax (hereinafter referred to as "VAT"), matters concerning the VAT reform in 2019 are hereby announced as follows:
Article 1 With respect to VAT taxable sales or imported goods of a VAT general taxpayer (hereinafter collectively referred to as "taxpayers" and individually as "taxpayer"), where the VAT rate of 16% applies currently, it shall be adjusted to 13%; the currently applicable VAT rate of 10% shall be adjusted to 9%.
Article 2 With respect to agricultural products purchased by a taxpayer, where the deduction rate of 10% applies currently, it shall be adjusted to 9%; with respect to those purchased by a taxpayer for the production or consigned processing of goods subject to the VAT rate of 13%, the input VAT shall be calculated as per the deduction rate of 10%.
Article 3 With respect to goods and services for export to which the export VAT rebate rate of 16% and the VAT rate of 16% apply currently, the export VAT rebate rate shall be adjusted to 13%; with respect to goods for export, cross-border taxable transactions to which the export VAT rebate rate of 10% and the VAT rate of 10% apply currently, the export VAT rebate rate shall be adjusted to 9%.
Prior to June 30, 2019 (including prior to April 1, 2019), where a taxpayer exports goods or services or carries out cross-border taxable transactions referred to in the preceding paragraph, to which the measures for VAT exemption and rebate apply, if the VAT has been levied thereon at the time of purchase as per the pre-adjustment rate, the pre-adjustment export VAT rebate rate shall apply, and if the VAT has been levied thereon at the time of purchase as per the adjusted rate, the adjusted export VAT rebate rate shall apply; where the measures for VAT exemption, offset and rebate apply, the pre-adjustment export VAT rebate rate shall apply; when calculating the VAT exemption, offset and rebate, if the applicable VAT rate is lower than the export VAT rebate rate, the difference between them shall be deemed to be zero and included in the calculation of VAT exemption, offset and rebate.
The implementation time of export VAT rebate rate, the time of exporting goods and services, and that of carrying out cross-border taxable transactions shall be subject to the following provisions: with respect to goods and services exported upon a customs declaration (except those exported in or through bonded areas), the export date indicated on the customs declaration form for export shall apply; with respect to goods and services exported without a declaration and cross-border taxable transactions, the issuing time of export invoices or general invoices shall apply; with respect to goods exported in or through bonded areas, the export date indicated on the record list of exit goods issued by the Customs at the exit port shall apply.
Article 4 With respect to departure-VAT-rebate goods purchased by overseas passengers subject to the VAT rate of 13%, the rebate rate of 11% shall apply; with respect to those subject to the VAT rate of 9%, the rebate rate of 8% shall apply.
Prior to June 30, 2019, where the VAT is levied as per the pre-adjustment rate, the pre-adjustment VAT rebate rate shall apply; where it is levied as per adjusted rate, the adjusted VAT rebate rate shall apply.
The implementation time of VAT rebate rate shall be subject to the issuing date of general VAT invoices for the VAT-rebate goods.
Article 5 As of April 1, 2019, Item 1, Paragraph 4 of Article 1 and Item 1, Paragraph 1 of Article 2 of the Provisions on Matters Relating to the Pilot Program of Collecting Value-added Tax in Lieu of Business Tax (issued as Cai Shui [2016] No.36) shall be annulled, and the input VAT levied on a taxpayer's acquisition of real estate or real estate project in progress shall be no longer subject to offset for two years.
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