China's State Administration of Taxation has issued two tax circulars concerning the changes in the value added tax system approved by the State Council on 28 March 2018.
Circular 32/2018 provides that the VAT rates are adjusted as follows effective 1 May 2018:
- Taxpayers who have VAT taxable sales activities or imported goods that originally applied 17% and 11% tax rates, have their tax rates adjusted to 16% and 10%, respectively;
- The general input tax deduction for the purcha…