The Ministry of Finance and State Administration of Taxation have in their jointly issued circular Cai Shui no. 37 informed that VAT program on Transport and Modern Services sector will become nationwide as of 1st August 2013. The tax rate is 6%.
Exact information on how carriers and airlines will respond to the tax change is not yet available. However, the tax has been announced to be effective from tomorrow and will apply on all invoices relating to freight and related services payable in China.
The changes in VAT rules in China will have direct and indirect effects on the cost of imports from China.
More information will follow when available.