Amid a slowing economy, the Chinese government will lower its value-added tax (VAT) effective April 1, 2019.
Few news sources have reported the shift. However, a news alert published by Dezan Shira & Associates, an Asian foreign investment firm, reported the following changes as found in China’s annual Work Report:
• manufacturing sector VAT will decrease from 16% to 13%;
• construction and transport VAT will lower from 10% to 9%; and
• the services sector VAT remains unchanged at 6%.
Shippers importing goods from China should anticipate a reduced VAT from their Chinese suppliers. If you have questions regarding your shipments, please send an email to compliance@anderinger.com.