China Releases Announcement on VAT Declaration Materials under Nationwide Tax Reform

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Jul. 2 – China’s State Administration of Taxation (SAT) released the “Announcement on Several Issues Concerning the Adjustment of Value-added Tax (VAT) Declarations (Announcement of SAT, [2013] No.37, hereinafter referred to as ‘Announcement’)” on June 19, which puts forward the VAT declaration materials required under the nationwide VAT pilot reform program. Detailed information can be found below.

According to the Announcement, all VAT taxpayers in China shall file VAT declarations in accordance with the following rules starting from September 1, 2013.

VAT Declaration Materials
Materials required for VAT declaration include the following two categories:

  1. Tax declaration forms and the appendixes thereto; and
  2. Other materials required for tax declaration.

Tax declaration forms and the appendixes thereto

VAT general taxpayers shall submit the following materials for tax declaration:

  • Value-added Tax Declaration Form (applicable to VAT general taxpayers);
  • Appendix 1 of the Value-added Tax Declaration Form (current sales breakdown);
  • Appendix 2 of the Value-added Tax Declaration Form (details on input tax for the current period);
  • Appendix 3 of the Value-added Tax Declaration Form (details on deductible items for taxable services);
  • Appendix 4 of the Value-added Tax Declaration Form (Information on tax deduction); and
  • Input Tax Deduction Form for Fixed Assets.

When determining the turnover of taxable service for VAT general taxpayers engaged in the provision of taxable service, if relevant fees and expenses can be deducted from the total fees and additional charges received by such taxpayers, the submission of Appendix 3 of the Value-added Tax Declaration Form is required. Other VAT general taxpayers do not need to submit this appendix.

Small scale VAT taxpayers shall submit the following materials for tax declaration:

  • Value-added Tax Declaration Form (applicable to VAT small scale taxpayers)
  • Appendix of the Value-added Tax Declaration Form (applicable to VAT small scale taxpayers)

When determining the turnover of taxable services for VAT small-scale taxpayers engaged in the provision of taxable services, if relevant fees and expenses can be deducted from the total fees and additional charges received by such taxpayers, submission of the Appendix of the Value-added Tax Declaration Form is required. Other small scale taxpayers do not need to submit this appendix.

Other materials required for tax declaration

A. Stubs from the Uniform Invoices for Motor Vehicle Sales and ordinary invoices issued by tax-controlled machines
B. Deduction pages of the following invoices that satisfy the deduction conditions and have been declared for deduction in the current declaration period:

  • VAT Special Invoices issued under the anti-counterfeiting and tax control system;
  • VAT Special Invoices for the Freight Transport Industry;
  • Uniform Invoices for Motor Vehicle Sales issued by tax-controlled machines; and
  • Uniform Invoices for Freight Transport by Road and Inland River.

C. Photocopies of the following documents which satisfy the deduction conditions and have been filed for deduction in the current declaration period:

  • Special customs payment statements for import VAT;
  • Ordinary invoices obtained for purchases of agricultural products;
  • Settlement documents for transportation costs; and
  • Settlement documents for other transportation costs.

D. The following documents that satisfy the deduction conditions and have been filed for deduction in the current declaration period:

  • Tax payment statements and the lists thereof;
  • Relevant written contracts;
  • Proofs of payment; and
  • Reconciliation statements or invoices of overseas entities.

E. Stubs or inspection pages for purchase certificates of agricultural products
F. Valid certificates for the deduction of relevant fees and expenses from the total fees, and additional charges received by taxpayers engaged in the provision of taxable services
G. Other materials required by the competent tax authorities

Submission of the tax declaration forms and the appendixes thereto are required for tax declaration, while other materials shall be submitted according to the requirements stipulated by local tax authorities.

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