The State Administration of Taxation in China released a Circular (Cai Shui  No.32), announcing a reduction to the current Value Added Tax (VAT) rate since May 1, 2018. The new rates cover all taxpayers other than the small-scale taxpayers to apply the simplified tax system, whose annual taxable turnover is below 5 million RMB (645 thousand euros).
The current standard tax rate on the taxable transactions and import of goods is 17%, with a special rate of 11% applying to certain industries and transactions. See below the key take-out for the tax revamp:
For trading company exporting goods and occurring cross-border taxable transactions by July 31, 2018, the reimbursement rate would apply if the current tax rate applies for goods purchased, otherwise the adjusted reimbursement rates should apply. For manufacturing and producing company exported goods and occurring cross-border taxable transactions by July 31, 2018, only the current reimbursement rates apply.
Source: SAT-CN (in Chinese)
With the fast growth of China’s economy and the continuous improvement of the comprehensive strength of domestic enterprises, as well as the implementation of the “One Belt, One Road” policy, an increasing amount of Chinese enterprises are beginning to expand their global footprint and establish their presence in Europe.
TPA Global has developed a practical roadmap of 6 steps meant to guide CFOs in their Journey of rising above troubles to reach a situation of full control. These steps are presented in a series of short video clips (3-5 minutes):