Tag: China VAT Recovery

Following Shanghai, Beijing to Roll out VAT Reform in July

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Also includes special heads-up for taxpayers in non-pilot areas

Feb. 29 – Following the experiment in Shanghai, the Chinese government has approved Beijing to become the second city that implements a value-added tax (VAT) reform pilot scheme, according to the state-run China National Radio.

Beijing’s tax authorities are in consultation with the city’s 54,000 business tax (BT) payers in order to get prepared for the pilot program set to commence on July 1, 2012. However, it remains unclear how many service sectors will finally be involved in the scheme. In Shanghai – the city that set the first example for such a program – BT impositions are substituted with VAT impositions in six modern service sectors as well as the transportation sector. Continue reading…