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Implementation of VAT (Value Added Tax) in China
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As from 1st august 2013 a value added tax of 6% is applicable for all charges payable in China. 

This change has been effected based on Circular Caishui [2013] No. 37 regarding the implementation of China’s VAT program for Transport and Modern Services Sectors. The VAT pilot scheme that was effective since 1st January 2012 will be abolished.

 

In pursuant to this requirement all freight charges payable in China will be taxed VAT as of 1st August 2013.