Recently China’s State Administration of Taxation issued guidance on the rules for value added tax (VAT) exemptions for exported services.
The guidance provided by Announcement 52 of 13 September 2013, implements the VAT exemptions for exported services. Issues such as whether taxpayers may self-assess eligibility for the exemptions or require a review are clarified by the new implementation rules. Some tax authorities in certain provinces of China have not allowed taxpayers to use exemptions from VAT for exported services, in the absence of the implementation rules. This situation should now change with the publication of Announcement 52.
