China to Lower Select VAT Rates on May 1

Yujin Weng
April 2, 2018

At the Executive Meeting of the State Council held on March 28, Premier Li Keqiang announced additional VAT reform measures directed towards easing the overall tax burden for taxpayers. By way of a recap, last July China eliminated their 13% by making eligible transactions now subject to tax at 11%.

This time, effective May 1, 2018, the VAT rate applicable to the manufacturing sector will be reduced from 17% to 16%. Likewise, VAT on other sectors including transportation, construction, basic telecommunications, as well as agricultural products will be reduced from 11% to 10%. For official information, please feel free to review the details, here.

Sign up for Email Updates

Stay up to date with the latest tax and compliance updates that may impact your business.


Yujin Weng

Yujin leads a team of attorneys that focus on global VAT determination, leveraging her ten-plus years of experience with indirect taxes at Sovos. Yujin is a member of the Massachusetts and New York Bars, has a J.D. cum laude from Boston University School of Law, an M.A. from Syracuse University, and a B.A. from Nanjing University (China). She is fluent in Chinese.
Share This Post