Date set for Beijing VAT pilot expansion

International Tax Review is part of Legal Benchmarking Limited, 1-2 Paris Garden, London, SE1 8ND

Copyright © Legal Benchmarking Limited and its affiliated companies 2025

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Date set for Beijing VAT pilot expansion

china-flag.jpg

Two weeks after China’s State Council confirmed the expansion of the country’s VAT pilot programme, a date has been set for when the scheme will be expanded to Beijing.

On September 1 Beijing will become the second city to implement the tax eight months after Shanghai.

China’s VAT reform programme, which was first piloted in Shanghai, sees VAT and business tax merged into a single tax. Businesses have widely welcomed the reform, which shifts the burden of taxation from them to consumers.

“Given the current business tax born by our company, VAT would significantly lighten our load in terms of tax burden,” said Christina Liu, finance controller at recruitment firm Hays, who is eager to the pilot expanded to other cities.

Around 138,000 taxpayers in the transportation and modern-service sectors, which are subject to business tax, will benefit from the reform to the tune of $2.6 billion.

The government is also looking to extend the pilot to Tianjin, Shenzhen and Xiamen, as well as the provinces of Guangdong, Jiangsu, Zhejiang, Anhui, Fujian and Hubei. More areas will be added next year as China looks towards a nationwide roll-out.

more across site & shared bottom lb ros

More from across our site

Wim Wuyts, who had been head of the specialist tax network since 2017, is moving on to a new role with WTS’s Belgian member firm
MNEs are increasingly using algorithmic tools in TP. Sahasranshu Dash argues that data ethics should therefore plug directly into the TP design process
The Institute of Chartered Accountants in England and Wales also queried whether HMRC resources could be better spent scrutinising larger entities
Grant Thornton’s Austria tax head likens his practice to an escape room, shares his football coaching ambitions, and explains why tax is cool
Awards
ITR is delighted to reveal all the shortlisted nominees for the 2025 EMEA Tax Awards
Awards
ITR is delighted to reveal all the shortlisted nominees for the 2025 Asia-Pacific Tax Awards
The fates of pillars one and two hang in the balance after the US successfully threw its weight around in G7 and Canadian negotiations
Rafael Tena tells ITR about the ‘crazy’ Mexican market, ditching the hourly rate, and refusing to grow his fledgling firm in an ‘unstructured way’
It should be easy for advisers to be transparent about costs, Brown Rudnick partner Matthew Sharp said in response to exclusive ITR in-house data
The sprawling legislation phases out Joe Biden-era green tax incentives for businesses; in other news, the UK will reportedly maintain its DST despite US pressure
Gift this article