Business Tax: China's Quasi-VAT

Authors

Wei Cui, Allard School of Law at the University of British ColumbiaFollow

Faculty Author Type

Current Faculty [Wei Cui]

Published In

International VAT Monitor

Document Type

Article

Publication Date

2009

Subjects

China, VAT

Abstract

On 1 January 2009, new VAT rules entered into force in China. Under these rules, all registered businesses are entitled to recover VAT on the purchase of capital assets other than immovable property. The Chinese VAT system does however not yet cover services and transactions concerning immovable property, which are still subject to the all-stage, cumulative business tax. In this article, the author explains that the process of gradual transformation of the business tax into a VAT has started and that the current business tax should already be seen as a quasi-VAT.

Citation Details

Wei Cui, "Business Tax: China's Quasi-VAT" (2009) 20:4 Int'l VAT Monitor 291.