Amendment of the Interim Regulation on Value-Added Tax (“Amendment”) was issued on 19th Nov. 2017, and the Interim Regulation on Business Tax was repealed

After the transition years, from 19th Nov. 2017, China repeal Business Tax. Despite to expand the scope of VAT, the Amendment has several aspects shall be highlighted.
1. To adjust the scope of taxpayers
The “Amendment” has added entities and individuals that sell services, intangible assets, or immovables shall be deemed as taxpayers.
2. To adjust some VAT rate
(1) To extend the scope for applying 17% tax rate, such as a taxpayer selling labor services, or tangible moveable property leasing service (except some specific properties and services).
(2) To change the 13% tax rate into 11%. The applicable objects include the sales or import of 5 specific properties as stipulated in the original regulations, and the transportation services, postal services, basic telecommunications, construction, immovables leasing services, the sale of immovables, transfer of land use right.
(3) To add 6% tax rate. Unless otherwise specified, this tax rate shall be applied to the taxpayer who sells other services, and the intangible property.
(4) To add 0% tax rate. This tax rate shall be applied to the domestic entities or individuals who cross-border sell the services and intangible properties specified by the state council.
(5) To delete an object applied 17% tax rate, which is providing process or repair services.
3、 To specify that the domestic entities or individuals who cross-border sell the services and intangible properties shall apply 0% tax rate, but they shall apply for tax refund(exemption) to the competent tax authorities on time.