China Insight - Tax
China moving forward to expand VAT scope with Shanghai as Pilot Region
In China, there are two major kinds of turnover taxes, i.e. VAT and business tax ("BT"). They cover different scopes of transactions. The VAT system mainly covers import and sales of movable/tangible goods, while the BT system covers services, transfer of intangibles and immovable properties. A few exceptions are processing, repairing and maintenance services which are covered by the VAT system, not the BT system.
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