VAT Reform in China
Global trends indicate that more and more countries are moving away from Business Tax (BT) towards Value Added Tax (VAT) as a more reliable means of raising revenue. A proposed mandate by the Chinese Government will see most of China move to a VAT system very quickly. The original pilot in Shanghai was a success, and Beijing should be the next city to employ the VAT system this year.
In conjunction with professional services organization Deloitte Touche Tohmatsu Limited, we have produced a whitepaper that examines the critical move to Value Added Tax in China.
The whitepaper, entitled China VAT Reform: Achieving a Successful Transition to VAT, highlights the wide-ranging practical implications of the VAT reform, the challenges and opportunities it presents, and reflects on lessons learned from the Shanghai pilot. It summarizes four key issues: financial impact, legal impact, commercial impact and systems impact as well as suggests a course of actions to help companies consider the steps they need to take to ensure they are adequately prepared for the transition.