Value-Added Tax ReformPublished: July 2012
As part of China's tax reform under the 12th Five Year Plan (2011 - 2015), value-added tax will replace business tax. Shanghai has taken the lead in the value-added tax (VAT) reform, having instituted a Pilot Reform Program for the transportation sector and six modern service industries since January, and Beijing is next.
- How does VAT work in the current tax system?
- Does VAT increase or decrease the overall tax burden?
- What's the legal framework of the VAT Reform Pilot Program?
- What problems do foreign companies often have with VAT?