Additional Guidance Issued on VAT Zero-Rated Services
Tax Newsflash:January 8, 2016/China
China's State Administration of Taxation (SAT) announced new guidance (Bulletin 88) on 21 December 2015 that supplements the Administrative Measures for VAT Refunds (Exemption) of Zero-Rated Services, which was originally issued via Bulletin  No. 11. Circular 118, issued jointly by the Ministry of Finance and the SAT in October 2015, expanded the scope of zero-rated services. (Tax Newsflash:January 8, 2016/China)
Bulletin 88 provides additional guidance relating to the services added to the list of zero-rated items by Circular 118 and clarifies several issues. Bulletin 88 applies retroactively from 1 December 2015, the same date that Circular 118 became effective.
This newsletter explains the following topics:
(1) Highlights of Bulletin 88
(2) Deloitte’s comments
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