VAT Pilot Reform to be Implemented in Beijing and Other Regions from September

VAT Pilot Reform to be Implemented in Beijing and Other Regions from SeptemberOn July 31, 2012, the Ministry of Finance and the State Administration of Taxation issued the “Notice on Commencing the Business Tax (BT) to Value-added Tax (VAT) Conversion Pilot Reform in the Transportation and Certain Modern Services Industries in Beijing and Seven Other Provinces and Municipalities (hereinafter referred to as the ‘Notice’)”.

The pilot regions covered under the Notice are:

Beijing municipality

Tianjin municipality

Jiangsu municipality

Anhui municipality

Zhejiang province (including Ningbo municipality)

Fujian province (including Xiamen municipality)

Hubei province

Guangdong province (including Shenzhen municipality)

According to the Notice, the various provinces and municipalities should complete the conversion by the following dates:

September 1, 2012: Beijing Municipality

October 1, 2012: Jiangsu Province, Anhui Province

November 1, 2012: Fujian Province, Guangdong Province

December 1, 2012: Tianjin Municipality, Zhejiang Province, Hubei Province

The Notice requires all pilot regions to commence preparation work for the pilot reform, including recognition and training of pilot taxpayers, adjustment and trial of levying equipment and systems, etc. in order to ensure that the pilot project progresses smoothly and that the BT to VAT conversions will be realized by the planned dates.

As of the date of conversion, the following legislation will apply to the pilot regions, with the Notice providing certain amendments in order to ensure their applicability to the various regions:

Caishui [2011] No.111

Caishui [2011] No. 131

Caishui [2011] No. 132

Caishui [2011] No. 53

For professional assistance in China contact Jerome Van Huigenbos at jerome.vanhuigenbos@dezshira.com or visit www.dezshira.com


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China Briefing hosts a wealth of business intelligence on legal, tax, and operational issues in China from a practical perspective. Knowledge, expertise and commentary for China Briefing is regularly contributed by Dezan Shira & Associates´ professional legal and tax staff. Currently located in Futian district, Dezan Shira & Associates has been assisting foreign companies in Shenzhen for 22 years.

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