Jan. 2012 - Clarifications on PRC VAT Treatments on Export of Services
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Pilot VAT - clarifications for Export of Services
Pursuant to the tax circulars Caishui [2011] No. 110 ("Circular 110") and 111 ("Circular 111") which outline the framework of the Value-added Tax ("VAT") Pilot Reform in China, the export of services would be subject to either VAT zero-rate or exemption treatments.
However, the details have not been clarified until the issuance of Caishui [2011] No. 131 "Notice On VAT Zero-rate or Exemption Treatments On Pilot Services" ("Circular 131").
Circular 131 is effective as of January 1, 2012. We set out below which categories of services are entitled to zero rate or VAT exemption treatments. The different treatments could have tax implications to service providers.
- Download the newsletter for detailed information per category of services
