On 3 December 2016, the Ministry of Finance of China issued accounting rules on value added tax (VAT). The Rules address the different aspects of recording VAT in accounting records and aligning accounting rules with VAT regulations in the aftermath of the VAT reform that transforms business tax on services into VAT. The Rules apply as from 3 December 2016.
Additionally, this rule specify how to make entries of sale of goods and services, acquisition of tangibles, taxation on the basis of the difference between sale proceeds and acquisition price and VAT refund for export.
