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Jing Cai Shui [2018] No. 987

Financial Bureaus of each district, Local Taxation Bureaus and branches directly under the Local Taxation Bureaus:

The Notice of the Ministry of Finance and State Administration of Taxation on Adjusting VAT Rate (Cai Shui [2018] No.32) is hereby forwarded to you for your compliance and implementation.

Appendix: The Notice of the Ministry of Finance and State Administration of Taxation on Adjusting VAT Rate (Cai Shui [2018] No.32)

Beijing Municipal Bureau of Finance

Beijing Local Taxation Bureau

May 8, 2018

Appendix

The Notice of the Ministry of Finance and State Administration of Taxation on Adjusting VAT Rate

Cai Shui [2018] No.32

The Financial Department (Bureau of Finance), State Administration of Taxation and Local Taxation Bureau of all provinces, autonomous regions, municipalities directly under the Central Government and cities under separate state planning, as well as the Bureau of Finance of Xinjiang Production and Construction Corps:

In order to improve the VAT system, we hereby notify the policies relevant to VAT adjustment as follows:

I. If the taxpayers have VAT taxable sales behavior or import goods, the VAT rate for them originally subject to the 17% and 11% rates will drop to 16% and 10%, respectively.

II. If the taxpayers purchase agricultural products, the deduction rate for them originally subject to the 11% rate will drop to 10%.

III. If the taxpayers purchase agricultural products for production and sales or consigned processing with 16% tax rate, the input tax rate will be calculated based on the 12% deduction rate.

IV. The rate of export tax rebate for export goods originally subject to the 17% rate and with the 17% rate of export tax rebate will drop to 16%. IV. The rate of export tax rebate for export goods and cross-border taxable behavior originally subject to the 11% rate and with the 11% rate of export tax rebate will drop to 10%.

V. For the cross-border taxable behavior as mentioned in Article IV relevant to goods and sales exported by foreign trade enterprises before July 31, 2018, if the VAT has been levied at the pre-adjustment tax rate at the time of purchase, it shall subject to the pre-adjustment rate of export tax rebate; if the VAT has been levied at the post-adjustment tax rate at the time of purchase, it shall subject to the post-adjustment rate of export tax rebate. The cross-border taxable behavior as mentioned in Article IV relevant to goods and sales exported by production enterprises before July 31, 2018, shall subject to the pre-adjustment rate of export tax rebate.

Adjust the execution time of the rate of exports tax rebate and the time of exporting, subject to the export date indicated on the goods declaration for exportation; adjust the execution time of the rate of tax rebate for cross-border taxable behavior and the time for cross-border taxable sales behavior, subject to the date of issue of the export invoice.

VI. This Notice will come into force as of May 1, 2018. In the event that the relevant provisions are inconsistent with the VAT rate, deduction rate and tax of export rebate rate stipulated in this Notice, this Notice shall prevail.

VII. Various regions shall attach great importance to the adjustment of VAT rate, do a good job in all preparations before implementation and the monitoring, analysis, publicity and interpretation in the implementation process, in order to ensure a smooth and orderly progress in the adjustment of VAT rate. In case of problems, please report to the Ministry of Finance and the State Administration of Taxation in a timely manner.

Ministry of Finance, State Administration of Taxation

April 4, 2018