VAT reform – into the future

On January 1 2012, the Chinese government took a giant step forward in its plan to replace the dual system of indirect taxes in China, being Business Tax (BT) and Value Added Tax (VAT), with a single VAT across both the goods and services sectors. Lachlan Wolfers, John Wang and Shirley Shen envision how the process that started with the commencement of a pilot scheme in Shanghai will progressively expand across China.