What are the deductible VAT you could claim?
By Victor Tu   Date:2016-11-17   Read:1989   [ Return ]

What are the deductible VAT you could claim?   

 

By Victor Tu

 

After May 1st, 2016, China has comprehensively implemented the Value Added Tax (VAT) across the country and phased out the Business Tax (BT) prior to that day.

 

As a General VAT taxpayer (17% or 6% VAT Rate applies), especially for those who mainly sell products in mainland China and manufacture products for exportation purpose ,how they could claim the input VAT for different items? This article will give you an introduction on this.

 

l  Office Stationery/Consumables/Machines/Inventories17% from General VAT suppliers or 3% from Small Scale VAT suppliers

 

l  Industrial Water: 13% or 6% from water plant, the specific rate chosen by the plant

 

l  Industrial Electricity: 17% from electric power plant

 

l  Repairing : 17% from General VAT suppliers or 3% from Small Scale VAT suppliers

 

l  Lodging in business travel: 6% from General VAT suppliers or 3% from Small Scale VAT suppliers

 

* For meals, transportation, entertainment costs in business travel, there is no deductible VAT.

 

l  Advertisement: 6% from General VAT suppliers or 3% from Small Scale VAT suppliers

 

l  Consulting/Legal/Accounting: 6% from General VAT suppliers or 3% from Small Scale VAT suppliers

 

l  Postal or Telecommunication costs: 11% from General VAT suppliers or 3% from Small Scale VAT suppliers

 

l  DHL/Shun Feng/FedEx courier fees: 6% from same city, 11% or 6% from different cities.

 

l  Lease fees for movable assets: 17% from General VAT suppliers or 3% from Small Scale VAT suppliers

 

l  Lease fees for real estate: 11% for landlord purchases the property after May 1st, 2016 and 5% before May 1st, 2016(for General VAT landlord); 5% applies for Small Scale VAT landlord.

 

l  Convention, Training, Meeting: 6% from General VAT suppliers or 3% from Small Scale VAT suppliers

 

l  Real estate purchase: 11% from the developers, and deductible by two times (Deducting 60% of the amount in current month and deducting 40% after 13 months later)   

 

l  Property insurances/Maintenance/Security: 6% from General VAT suppliers or 3% from Small Scale VAT suppliers

 

 

Keywords: Ningbo accounting, Ningbo Auditor, Ningbo accountants, Ningbo CPA

关键词:宁波会计,宁波审计,宁波会计师,宁波涉外会计,宁波注册会计师

 

Victor & Truman,CPAs  宁波纬度会计师事务所(普通合伙)