Tax Services - Value-added Tax (VAT) Exemption Application

Written by Tricor Group | Jan 7, 2021

Tricor China’s latest article: Tax Services - Value-added Tax (VAT) Exemption Application provides extensive insights on the VAT exemption background, benefits, case studies, and Tricor’s solutions to assist you during the VAT exemption application.

Since the new announcement of State Administration of Taxation from 2016, the VAT on cross-border services provided to overseas companies could be exempted. In the initial years, the tax authority only approved the application for R&D services, design services, software services and information system services. However, in recent few years, the tax authority has expanded the VAT exemption into business process management services, offshore services, and outsourcing services. Most foreign procurement & supply chain management company may qualify for above scope.

Once the VAT exemption is approved, there are 3 main benefits.

VAT on qualifying services is exempted with immediate effect from the following month of approval
Annual application is NOT required
Local surtaxes levied on the VAT are also be exempted

Tricor can provide comprehensive advice and assistance in all areas of direct and indirect taxes including:

Tax consulting
Tax due diligence & health check
Tax compliance
Tax planning

Register and download the full article to learn more. For further enquiries, please email our expert team: communication.china@cn.tricorglobal.com or contact Tricor China Associate Director of Business Services Yvonne Lam at yvonne.lam@cn.tricorglobal.com, Manager of Business Services, CPA, CTA Terry Yan at terry.yan@cn.tricorglobal.com, or Manager of Client Relationship Stephanie Ming at stephanie.y.ming@cn.tricorglobal.com.

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