China Tax Alert – Issue 22, September 2013
Changes to China’s Value Added Tax (VAT) system from 1 August 2013 have increased the overall VAT burden on international air and sea transportation providers, their agents based in China, freight forwarders and other logistics service providers. This China Tax Alert summarises the changes, and outlines what can be done to alleviate the increased VAT burden, and how KPMG can assist.
In broad terms, these changes have typically resulted in an increased VAT burden of 6 percent, together with local surcharges of approximately 0.8 percent. Given the relatively small margins in the industry, these changes can significantly erode profitability.
Source : KPMG (http://www.kpmg.com)