I received numerous notifications from my logistics providers today in regards to the Chinese Government’s Circular No. 37 (Cai Shui [2013] No. 37) on “Tax Policy Regarding Nationwide Implementation of VAT Pilot Program on Transportation and Modern Services Sectors”.  This new tax policy has been issued jointly by the Ministry of Finance (MOF) and the State Administration of Taxation (SAT) of the People’s Republic of China (PRC).

The new policy which replace the previous policy issued this past January will go into effect on August 1, 2013 and calls for a VAT of 6% which will be levied on top of freight and charges currently payable in China.

If you have any question in regards to how the new policy will affect your company, contact your local logistics provider directly.  For the truly adventurous, below is a link to the official No. 37 Circular….note that it is entirely in Chinese.

http://www.chinatax.gov.cn/n8136506/n8136593/n8137537/n8138502/12319504.html