One session at the VAT conference, organized by the Institute for Professionals in Taxation last week in Indianapolis, discussed the VAT implementation in China.
Robert Smith (EY):
- China VAT implementation now finalized – some transitional business tax liabilities remain.
- Business tax was not creditable – now replaced by a creditable VAT at a higher rate.
- Still China lost US$ 35 billion on additional VAT credits and missing business tax revenue in the first 7 months of 2016. (!!!)