Part 1: VAT for transportation and logistics sector – key impacts
Part 1: VAT for transportation and logistics sect...
China alert - Issue 7, May 2012
The Value Added Tax (VAT) reforms are now operational in Shanghai, and it is expected they will be expanded to Beijing, Tianjin and Chongqing from 1 July 2012, followed by several other provinces in early 2013. Many businesses in Shanghai have now lodged their first few VAT returns, and with this comes the practical realisation of the challenges in implementing these reforms. For transportation and logistics businesses, the challenges are immense, covering the full spectrum of VAT complexity, including different VAT rates for various service categories; a mixture of input VAT credits, deemed input VAT credits and denied input VAT credits; services which may be zero rated, exempt or taxable; withholding obligations, and difficult accounting and invoicing processes.
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