China Tax Agency Explains Circumstances for VAT Exemption for Cross-Border Services

The Chinese State Administration of Taxation Jan. 9 explained the circumstances under which taxpayers can claim VAT a exemption for providing cross-border services. The tax agency explained: 1) that taxpayers engaged in cross-border sales of services and intangible assets must sign a written contract in order to claim a VAT exemption; 2) that taxpayers are eligible for a VAT exemption if the entire income from the sale of such cross-border services or intangible assets is obtained from overseas; and 3) the circumstances that qualify as overseas income. [China, State Administration of Taxation, 01/09/20]

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