Fapiao

Social Credit System China

China’s Social Credit System and Taxes

The Chinese government is pushing ahead with its social credit project, which evaluates the trustworthiness of every citizen and company using a points system. The aim is to record, evaluate, reward or sanction desired and undesirable behavior. Al...

China to launch Tsunami-like Tax Inspection of False Special VAT Fapiaos

After the recent changes regarding Fapiaos, the Chinese government has now launched a massive campaign to root out fake and falsely claimed Special VAT Fapiaos.   Already in February, Chinese tax authorities had issued an annual work plan (Shuizong...

Common Mistakes, and how to Avoid Them

Some of the most common mistakes our clients make, and how they can easily be avoided While every case we deal with is unique, some mistakes are more common than others. We recently audited a client’s Chinese branch and found some very common, and a...

New Regulations for Fapiaos

China’s State Administration of Taxation (SAT) has published new regulations for collecting fapiaos. Beginning from 1 July 2017, taxpayers need to provide their tax identification number (TIN) for obtaining a fapiao. Under the new regulation, more...
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The Importance of Chops in China

Everyone who has ever been involved in a business activity in China has certainly come into contact with the peculiar red mark on every document: the chop. The chop is the Chinese equivalent of a signature in the Western Hemisphere and it is the ulti...
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VAT in China Part 4

When a foreign invested company in China is lacking on money, the foreign headquarter often would like to transfer cash in order to keep the liquidity. However, what sounds like an easy bank transfer, in reality, turns out to be a complex subject. In...
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VAT in China Part 1

Fapiaos The Chinese VAT system is similar in many aspects to most Western country´s VAT systems. Who is well familiarized with the international standards, often also knows the right procedure in the Chinese system. In both cases the VAT will be cha...
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VAT in China Part 2

Importation VAT Same as for the EU, in China apart of the selling of products, the import of products is also subject to VAT. In opposite to the normal VAT this so called Importation VAT is an excise tax which is subject to the custom tax law. There...
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VAT in China Part 3

The VAT reform in China: What has changed since 1st of August 2013?   Chinas Value Added Tax (VAT) reform is executed since August 2013 everywhere In China. On services in the transportation sector and on so called modern services there is no Busin...
VAT Update China

Companies benefit from the new VAT Tax System Upgrade

Already since the beginning of this year, the Chinese government has promoted the upgraded version of the Value Added Tax (VAT) Invoice System, also called the “fapiao” system. A comprehensive and nationwide implementation of the newly recognized Gen...