Part I: VAT Reform – Preparing for the national roll-out
VAT reform pilot program to be launched on Jiangsu provinces on 1 October 2012
According to Caishui [2012] No. 71, it is anticipated that Jiangsu will launch the VAT reform on 1 October 2012. China's VAT reform is major and although not all business may be in favor of it, it presents potential tax savings and other opportunities. As pilots take place rapidly in other regions, whether companies have sufficient time to prepare will be crucial. In light of the wide-ranging implications of the changes, companies should act now to assess the impact on their business, ensure readiness, minimize the risks of non-compliance and ensure any benefits that have been identified are realized.
As Jiangsu joins China's VAT reform program as the second batch behind Shanghai, what lessons were learned from the Shanghai pilot? What new features of Jiangsu's pilot will be important for successful implementation? We'll discuss the followings in the workshop:
· An overview of the practice of the Shanghai pilot and the new features of the Jiangsu pilot.
· Top pilot program issues and practical steps pilot companies can take to manage them.
· Techniques for a smooth transition from a business taxpayer to a VAT payer.
· Actions to be taken for the continued rollout.
· Learn about practical experiences VAT payers had during the Shanghai pilot and how other companies are pursuing a successful implementation of the reform.
Part II: New guidance to streamline VAT rules for export of goods and services
China’s Ministry of Finance (MOF) and State Administration of Taxation (SAT) have jointly issued a tax circular, Caishui [2012] No. 39 ("Circular 39"), and the SAT has separately issued guidance (Bulletin [2012] No. 24, "Bulletin 24") that summarizes the VAT and Consumption Tax (CT) administrative policies for the export of goods and services. The two sets of regulations generally became effective on 1 July 2012, although certain provisions apply retroactively as from 1 January 2011.
While the main purpose of Circular 39 and Bulletin 24 is to streamline and consolidate previous regulations on the export VAT refund, the new rules contain significant changes, most of which are beneficial to export businesses. The rules, which invalidate more than 100 previous circulars addressing the export VAT refund and provide guidance on the refund mechanism, demonstrate the intent of the Chinese government to facilitate a sustainable environment for the export sector. However, because of the complicated nature of China’s export refund scheme, it is important for affected businesses to apply the new policies properly. In this connection, we would like to share with you our thoughts and experience regarding this new guidance in the workshop.
Speaker
Ms. Maria Liang, Tax partner, Deloitte
Ms. Guan Lie Yun, Tax Senior Manager, Deloitte
Ms. Ding Pei Qin, Tax Senior Manager, Deloitte
Agenda
13:30 - 14:00 --- Registration
14:00 - 15:15 --- Presentation by Ms. Maria Liang, Tax partner & Ms. Guan Lie Yun, Tax Senior Manager, Deloitte
Part 1: VAT Reform – Preparing for the national roll-out
15:15 - 15:30 --- Coffee break
15:30 - 16:15 --- Presentation by Ms. Maria Liang, Tax partner & Ms. Ding Pei Qin, Tax Senior Manager, Deloitte
Part 2: New guidance to streamline VAT rules for export of goods and services
16:15 - 16:30 --- Q&A