China MOF Seeks Comments on Draft VAT Law Regulations

The Chinese Ministry of Finance Aug. 11 opened a consultation on draft VAT regulations, to clarify the VAT Law. The draft regulations include measures to clarify: 1) the scope of taxation of goods and services, and in-scope taxpayers; 2) the requirement that sales and VAT amounts be separately stated on special VAT invoices; 3) the tax rates and taxability of exported goods, cross-border services, and intangible assets; 4) the rules and methods for crediting input tax, and the transactions for which input tax is non-deductible; 5) incidental expenses, determined sales amounts, and abnormal loss items; and 6) exemption standards, tax ...