Circular Number Issuance Date Effective Date Topic What is new? SAT Announcement  No. 30 2017-08- 14 2017-09- 01 Several updates on administrative measures for VAT VAT payers that have completed VAT exemption recordal procedures for crossborder VAT taxable activities based on SAT Announcement  No. 29 can be exempted from repeated recordal procedures for conducting the same cross-border VAT taxable activities again. The taxpayer should keep full record of supportive documents related to the VAT exemption for tax authorities’ future reference. If the taxpayer fails to provide such documents during the follow-up administration, VAT exemption will not be applicable and the taxpayer should make up any VAT previously exempted or underpaid according to the PRC Administrative Law of Tax Collection. Where a VAT payer signs a shipping service contract with a consignor, gets paid and takes the role as a carrier, while subcontracting the entire or part of the shipping service to a carrier subcontractor, input VAT of refined oil and tolls of roads, bridges and water gates which the taxpayer has purchased and provided to the subcontractor can be used to credit against the taxpayer’s output VAT liabilities if both requirements below are met: - The refined oil and the tolls of roads, bridges and water gates are used by the carrier subcontractor to provide the subcontracted shipping services; and - Valid VAT vouchers for credit purpose are available. Where an individual leases real estate to the tenants via a real estate agent or a house renting enterprise, he/she can ask the real estate agent / house renting enterprise to apply with the competent tax authorities to issue VAT invoices on his / her behalf. Starting from 1 January 2018, the financial institutions providing discount services can issue normal VAT invoices based on the full amount of the discount interest to the discount applicants and the financial institutions providing rediscount services can issue normal VAT invoices based on the full amount of the rediscount interest to the institutions providing discount services. SAT Announcement  No. 32 2017-08- 29 2017-10- 01 Assessment on taxable price of cigarettes for Consumption Tax (“CT”) purpose The Announcement is a supplementary regulation of the previously released SAT Announcement  No. 26 (“Announcement 26”). Details are as follows: According to the Announcement, for cigarettes of new brand / specification, the information of which is not yet reported to the tax authorities according to Announcement 26, cigarette manufacturers (as the CT payers) may apply with the competent tax authorities to adjust the taxable price for CT purpose after having paid CT based on the taxable price previously assessed by the State Administration of Taxation (“SAT”) for one year. The SAT shall then make adjustment and determine the updated taxable price based on the most up-to-date information available regarding the wholesale price of cigarettes of the same brand / specification during the most recent six months. If the sales price declared in the List of Monthly Sales Details of Cigarette Manufacturers is not correct, leading to taxpayers’ disapproval against the CT taxable price assessed by the SAT, the taxpayers may apply with the competent tax authorities to make an adjustment from the date on which the assessed taxable price comes into effect. If a taxpayer adopted an incorrect taxable price which is for cigarettes of a different brand / specification, consequently leading to CT underpayment, the competent tax authority shall make adjustment based on the retail price and the minimum applicable wholesale gross profit rate of the cigarettes of the correct brand / specification to determine the taxable price for CT purpose.