China MOF Announces Congress Passes VAT Bill

The Chinese Ministry of Finance Dec. 25 announced the National People’s Congress same day passage of a VAT bill to standardize the VAT collection and payment system. The law includes measures to: 1) cover entities and individuals that sell goods, services, intangible assets, or real estate, or that import goods; 2) set a 13 percent rate for goods and services like repairs, a 9 percent rate for services like transportation and real property leasing, a 6 percent rate for intangible assets, and a zero percent rate for exports and specified cross-border services; 3) allow small-scale taxpayers with annual VAT-taxable sales ...