Announcement of policy to deepen VAT reform

Source: 2019-3-20 Ministry of Finance, State Taxation Administration and the General Administration of Customs.  2019 No 39

1. When taxpayers engage in VAT applicable sales or imports of goods, the previous tax rates of 16% and 10% are now adjusted to 13% and 9% respectively.

2. When taxpayers purchase agricultural products, the previous deduction rate of 10% is now adjusted to 9%. Taxpayers who purchase agricultural products at 13% tax rate to be used in production or consigned processing to apply deduction rate of 10% in calculating input tax.

3. The export of goods previously subject to 16% tax rate and 16% export rebate rate is now adjusted to 13% for export rebate. The export of goods and cross-border taxable acts previously subject to 10% tax rate and 10% export rebate rate is now adjusted to 9%.