China’s New VAT Reform

New rules have been issued by the Ministry of Finance and State Administration of Tax regarding application of VAT to ocean transport services which will become effective on 1st August, 2013.

The majority of carriers have confirmed that they will start to debit 6% VAT on all charges payable in China. In order to avoid the payment of VAT, the ocean rate should be payable at destination. For more details contact Charles McPeake at Blacksmith Freight.