Update: VAT Rebate Scheme to Change

Tuesday, September 19, 2006 2:35

Following our post on July 9 (New Regulations: VAT Reduction), we have received the following file detailing the effect the new VAT scheme will have.

There are three tabs: VAT Elimination, VAT Benefit Reduction, and VAT Benefit Increase.

While the file is in Chinese, you can search by HS Code (Start with 4 number search, then extend to your full 8 digit code).

At the time of writing this post, we are being told that the changes will take affect in December (no indication as to beginning or end, but most likely Dec 1).

However, following our previous posting, Chinese heavy manufacturers were successful in getting the changes delayed, and it is possible that could happen again.  With any luck (we are managing heavy industry client operations), they will be successful again.

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3 Responses to “Update: VAT Rebate Scheme to Change”

  1. All Roads Lead To China » Paulson’s Visit: Win, Lose, or Draw? says:

    September 24th, 2006 at 6:37 pm

    […] Second, while Paulson was in China released a new VAT rebate structure, which while increasing the costs of many exports went completely ignored by the Western media. This is curious as U.S. officials have been pushing China to take more steps to reign in the flood of exports arriving in the U.S., and the Chinese have taken a major step to increase the prices of many goods (some saw an increase of 13%). […]

  2. All Roads Lead To China » China’s Turns its Nose Up at Common Investment says:

    November 13th, 2006 at 9:09 pm

    […] VAT tax reductions in heavy industrial categories (See All Roads Post for more)) […]

  3. All Roads Lead To China » VAT Reductions: Coming Soon to a Steel Product Near You says:

    February 6th, 2007 at 3:22 am

    […] As we announced several months ago in a September post entitled VAT Rebate Scheme to Change, low value manufacturers were going to begin seeing a change in the amount of money the Chinese government would kick back. […]