(“Cai Shui  No.57”) (财政部、国家税务总局关于简并增值税征收率政策的通知)
Under the old regime, the supply of special goods could be entitled to reduced rates of 6%, 5%, 4% or 3%, provided that the taxpayer is under the simplified VAT method, which in turn implies that it cannot deduct the input VAT.
From July 1, 2014, the special VAT rates are all reduced to 3%. The Ministry of Finance and the State Administration of Taxation will probably soon issue the notice implementing this decision.
Date of issue: June 13, 2014. Date of effectiveness: July 1, 2014.