Wednesday, August 7, 2013
China Value Added Tax on Transportation Charges
Effective August 1, 2013, China’s Ministry of Finance began enforcing Circular 37 Cai Shui (2013) No.37, a Value Added Tax (VAT) on “Transportation and Modern Services Sector”. An additional 6% Value Added Tax will be assessed on all freight and ancillary transport charges payable in China. The new VAT tax will impact international ocean and air shipments including exports to the United States and imports into China where charges are paid in China.