News Content
China clarifies: Forwarders booking international cargo VAT free
CHINA's Ministry of Finance has updated its VAT exemption policy for international forwarders in Notice [2013] No 106 published in December, saying that shipping and airline agents who make payments to international transport providers are entitled to a VAT exemption.
The initial notice seemed to imply that only agents directly making payments to international transport providers (airlines and shipping companies) can be exempted from VAT. This alarmed forwarders as most do not contact with international carriers, reported the BIFA (British International Freight Association) newsletter.
The ministry clarifies the situation for freight forwarders by stating that: in the definition of "international freight forwarding services" in Article 1 of Notice [2013] No.106, the wording of "agents" in "consignees" or their agents, consigners or their agents' includes both direct and indirect agents.
The wording of "business operation related to cargo and shipping agency" includes making a cargo reservation, business liaison, container management, account settlement and other operations in relation to international transportation of goods.
Taxpayers, whether they have direct business contact with international transport providers, are entitled to VAT exemption, according to the reform as long as they fall within this definition.
The initial notice seemed to imply that only agents directly making payments to international transport providers (airlines and shipping companies) can be exempted from VAT. This alarmed forwarders as most do not contact with international carriers, reported the BIFA (British International Freight Association) newsletter.
The ministry clarifies the situation for freight forwarders by stating that: in the definition of "international freight forwarding services" in Article 1 of Notice [2013] No.106, the wording of "agents" in "consignees" or their agents, consigners or their agents' includes both direct and indirect agents.
The wording of "business operation related to cargo and shipping agency" includes making a cargo reservation, business liaison, container management, account settlement and other operations in relation to international transportation of goods.
Taxpayers, whether they have direct business contact with international transport providers, are entitled to VAT exemption, according to the reform as long as they fall within this definition.
Latest News
- For the first time, tianjin Port realized the whole process of dock operati...
- From January to August, piracy incidents in Asia increased by 38%!The situa...
- Quasi-conference TSA closes as role redundant in mega merger world
- Singapore says TPP, born again as CPTPP, is now headed for adoption
- Antwerp posts 5th record year with boxes up 4.3pc to 10 million TEU
- Savannah lifts record 4 million TEU in '17 as it deepens port
