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ARTICLE · 09 MAY 2019

5 Big Changes To China's VAT In 2019

Dezan Shira & Associates
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Following the announcements made in the annual Work Report delivered at the Two Sessions, the Ministry of Finance, State Taxation Administration, and General Administration of Customs have jointly issued a series of new policies on VAT.

ChinaTax
Amber Liu
Amber Liu

Following the announcements made in the annual Work Report delivered at the Two Sessions, the Ministry of Finance, State Taxation Administration, and General Administration of Customs have jointly issued a series of new policies on value-added tax (VAT).

The new polices, which took effect on April 1, 2019, aim to enhance economic activity in certain sectors by lowering VAT rates and increasing VAT credits.

The latest changes mark the final stages of China's overhaul of its VAT system, and come as part of a larger RMB 2 trillion (US$298.3 billion) cost cutting package intended to boost China's economy

Here, we highlight five major changes to the new VAT policies.

1. Reducing VAT rates

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