Tax services

Worldwide tax summaries Asian Tax and Advisory Webcast Series

China Tax/Business News Flash 

View this page in: 简体中文版

May 2016, Issue 16

Administrative measures for VAT exemption on cross-border taxable activities under the B2V Pilot Program – detailed preferential policy conditions and standardised record filing procedure


On 24 March 2016, the Ministry of Finance (MoF) and the State Administration of Taxation (SAT) jointly released Caishui [2016] No.36 <Notice on the Comprehensive Roll-out of the Business tax to Value Added Tax (B2V) Transformation Pilot Program (the “B2V Pilot Program”)> ( “Circular 36”). Appendix 4 of Circular 36 <Regulations on the Cross-border Taxable Activities eligible for VAT Zero-rating or Exemption> clarifies the VAT exemption policies for cross-border taxable activities of the newly included B2V industries and adjusts the scope of cross-border taxable activities that was previously included in the B2V Pilot Program. On 12 May, the SAT released Public Notice No.29 <Administrative Measures on VAT Exemption for Cross-border Taxable Services under the B2V Pilot Program (Trial)> ( “PN 29”), which clarifies the detailed implementation requirement for cross-border taxable activities and standardises the record-filing procedures for cross-border taxable activities eligible for VAT exemption. PN 29 shall take effect retrospectively from 1 May 2016 and the previous released Public Notice No.49, <Administrative Measures on VAT Exemption for Cross-border Services under the B2V Regime (Trial)> was abolished simultaneously. In this issue of our News Flash, we would like to introduce the new measures on cross-border taxable activities eligible for VAT exemption treatment and share our observations.

Other issues of China Tax/Business News Flash
Visit our Tax Library.
Contacts
Alan Wu
Partner
Beijing
Tel: +[86] (10) 6533 2889 Email
Robert Li
Partner
Shanghai
Tel: +[86] (21) 2323 2596 Email
Liang Gong
Partner
Shanghai
Tel: +[86] (21) 2323 3824 Email
Janet Xu
Partner
Guangzhou
Tel: +[86] (20) 3819 2193 Email
Cindy Li
Partner
Shenzhen
Tel: +[86] (755) 8261 8151 Email
More contacts