On 13 June 2014, China's Ministry of Finance and the State Administration of Taxation jointly issued “Announcement on Policy for Simplifying and Unifying Value-added Tax (VAT) Levy Rate (Cai Shui 014] No.57).”
According to the notice, certain supplies that are a currently taxed at 4% and 6% rates using the simplified calculation method will have their rates reduced to 3%, which is the applicable rate for most supplies under the simplified method. Under the simplified method, VAT rates are re…