China Times, 4/03/14
Wang Jun, secretary-general of Chinese tax agency industry alliance Wisemove Tax Cooperation Organization, has disclosed that the implementation of planned telecom operator value-added tax (VAT) trials in China may be postponed until June 1. The trials will reportedly feature two different VAT rates, 6% and 11%.
According to draft legislation submitted by China's Ministry of Finance (MoF) to the National People's Congress (NPC) in early March, the MoF planned to implement telecom industry value-added tax (VAT) trials on April 1, but as of today, China's three major telecom operators have not received a notice regarding a change to the existing VAT. Staff members at the MoF have also not received a policy change notification yet, according to an a MoF employee.
Editor's Note: For more background on this topic, please see "China to Start Telecom VAT Trials in April" MD 3/06/14 issue.