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Shanghai VAT Pilot program

Former Member
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150

Hello Experts,

Need your advice in following scenario.

Our company have an branch in Shanghai, which has been providing IT Services. According to the SH VAT pilot program, the IT services which was subject to 5% BT before will be subject to 6% VAT from Jan 2012. The Shanghai tax bureau requires the accounting bookings to clearly record the related revenue, cost, as well as the daily expenses for the 6% VAT related services.Has anyone been working on similar sceanrio or if you are aware of any OSS note could you please advice.

If the copany could not provide the satisfactory accounting books, the tax bureau will not allow it to issue output VAT invoice or credit the related input VAT .

SHANGHAI VAT PILOT PROGRAM :-

From 1 January 2012 qualified businesses in Shanghai will be required to charge VAT following approval by the local tax bureau;

Input VAT is creditable both for qualified pilot participants and their customers;

Generally, the program follows existing VAT mechanisms;

Two new VAT rates will be introduced, 6% and 11%, adding to the existing rates of 13% and 17%;

Treatment of exports is yet to be determined but likely 0% or tax exempt;

The first VAT return is due on 15 February 2012;

Companies should now prepare for compliance burdens.

Thank You.

Amy

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Former Member
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hi

check the below said SAP Notes

1632505 China Golden Tax Interface Legal Change for GTS 7.00 26.10.2011

1651789 China additional VAT rate 14.11.2011

1643426 China Golden Tax Interface Legal Announcement for GTS 7.00 24.10.2011

841618 China Golden Audit Interface: New legal requirement