(“Bulletin [2014] No. 11”) (国家税务总局关于发布《适用 增值税零税率应税服务退(免)税管理办法》的公告), issued by the SAT

Bulletin [2014] No. 11 substitutes Bulletin [2013] 47, issued by SAT on Promulgating the Administrative Measures for Tax Refund (Exemption) for Taxable Services Subject to Zero Value Added Tax Rate (commented in our newsletter of September 2013).

Bulletin [2014] No. 11 clarifies the following:

  • Headquarters paying VAT on a consolidated basis could be mainly engaged in services subject to the zero-rated VAT system.
  • Regarding international transportation, it specifies (i) the international transportation activities that qualify for the zero-tax rate system, (ii) the tax base to be considered when computing the “exemption, credit and refund” method, and (iii) the materials to be enclosed to the declaration of “exemption, offset and refund”.
  • Trading companies rendering R&D and design services qualifying for the zerorated VAT exemption can switch from the refund (exemption) method to the exemption, offset and refund tax methods.

Date of issue: February 8, 2014. Date of effectiveness: January 1, 2014