Flash: China - Further roll-out of the VAT Transformation Pilot Program

Tax Insights

After the launch of the business tax ("BT") to value-added tax ("VAT") transformation pilot program ("Pilot Program") for the transportation industry and certain modern service industries in Shanghai effective from January 1st, 2012, the State Council has now approved expanding the Pilot Program to 10 other provinces and municipalities: Beijing, Tianjin, Jiangsu, Zhejiang, Anhui, Fujian, Hubei, Guangdong, Xiamen and Shenzhen (hereinafter referred to as "10 New Pilot Regions") in batches from August 1st through to the end of 2012. The expansion was officially announced during a recent State Council meeting called by Premier and the announcement also mentioned that the Pilot Program will be further expanded into other regions and a nationwide pilot will be launched for selected industries in the Pilot Program next year.

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