Change from Business Tax into VATIn case of divergence of interpretation, the Chinese text shall prevail.

Announcement of Qingdao State Taxation Bureau on Relevant Issues Concerning the Simple Taxation Method of VAT-for-BT Reform and Filing for Record of Sales Amount Deduction

Document No.:Announcement No.13, 2013 of Qingdao State Taxation Bureau

Taxes:Change from Business Tax into VAT

Date of Promulgation:

IssueDepartment:State Taxation Bureaus of Localities

Date of Implementatio:2013-07-23


In accordance with the provisions of the "Notice of the Ministry of Finance and the State Administration of Taxation on Taxation Policies for Carrying out Nationwide the Pilot Project Reform of VAT for Business Tax in Transportation and Certain Modern Service Industries" (Cai Shui [2013] No.37), the issues relating to the simple taxation method of VAT-for-BT reform and the filing for record of sales amount deductions are notified as follows:


I. Taxpayers of the pilot project as regulated in Item (4) and Item (7) of Article I of the "Provisions on Relevant Issues Concerning the Pilot Project of VAT for Business Tax Reform in Transportation and Certain Modern Service Industries" (Annex 2 of Cai Shui [2013] No.37, hereinafter referred to as the "Provisions") shall apply for putting on record with the in-charge taxation authorities according to the provisions of this Announcement; those who fail to do so shall not apply the provisions for simple taxation method and sales amount deductions.


II. Taxpayers of the pilot project who are eligible for sales amount deductions shall submit the following materials to the in-charge taxation authorities:

(1) Taxpayer's application report;

(2) "Form of the Application and the Filing of Sales Amount Deductions for the Record" (Annex 1);

(3) The approval document jointly issued by the People's Bank of China, the Ministry of Commerce, and the China Banking Regulatory Commission for approving the taxpayer to be engaged in financial leasing businesses (a copy shall be kept for reference after the inspection of the original document);

(4) The related transaction contract (a copy shall be kept for reference after the inspection of the original document).


III. Requirements for the levy & collection of VAT by using the simple taxation method


(1) If taxpayers of the pilot project select the simple taxation method to calculate and pay VAT, all of their taxable services which are in compliance with all the conditions of simple taxation method shall be subject to such a method for the VAT payment purposes; partial select is not allowed. Once the taxpayers of pilot project have selected the simple taxation method, they cannot change the method within 36 months time.


(2) Taxpayers of the pilot project who are in compliance with Item (7) of Article I of the "Provisions" for the provision of public transportation services shall submit the following materials to the in-charge taxation authorities for the purposes of filing for the record:

1. Taxpayer's application report;

2. "Form of the Application and the Filing for the Record of the Simple Method of Tax Collection Used by General Taxpayers of the Pilot Project" (Annex 2);

3. The units which are engaged in wheel ferry shall offer the valid "License for Waterway Transportation";

4. The enterprises which are engaged in other public transportation services shall provide the valid "Business License for Road Transportation".


(3) Taxpayers of the pilot project who are in compliance with Item (7) of Article I of the "Provisions" for the provision of operating leasing of tangible personal property (hereinafter referred to as the operating leasing of second-hand equipment) shall submit the following materials to the in-charge taxation authorities for the filing on record purposes:

1. Taxpayer's application report;

2. "Form of the Application and the Filing for the Record of the Simple Method of Tax Collection Used by General Taxpayers of the Pilot Project" (Annex 2);

3. "List of the Application and Registration of the Subject Matter of the Operating Leasing of Second-hand Equipment" (Annex 3).


The Announcement is given as above.


Qingdao State Taxation Bureau

July 23, 2013


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