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

Announcement of Sichuan State Taxation Bureau concerning Policies on Services of Tele-communications Industry Resulted from VAT for BT Tax Reform Pilot Project

Document No.:

Taxes:Change from Business Tax into VAT

Date of Promulgation:

IssueDepartment:State Taxation Bureaus of Localities

Date of Implementatio:2014-05-15


According to “Notice of the Ministry of Finance and the State Administration of Taxation on Including the Services in the Telecommunications Industry into the Pilot Project of VAT for Business Tax Reform” (Cai Shui (2014) No.43), in order to ensure the smooth implementation of the pilot project of VAT for business tax reform (hereinafter referred to as VAT-for-BT reform) of the services in the telecommunications industry in Sichuan province, the relevant matters are hereby notified as follows:


. Scope of taxpayers in the pilot project of VAT-for-BT reform of services in the telecommunications industry 


The scope of taxpayers of the pilot project of VAT-for-BT reform includes units and individuals providing services in the telecommunications industry within the territory of the People’s Republic of China.


. Scope of the VAT-for-BT reform of services in the telecommunications industry 


Telecommunications industry refers to business activities which use wired and wireless electromagnetic system or optoelectronic system, and other telecom network resources to offer voice communication services and to send, transmit, receive, or apply images, messages and other electronic data and information. It includes basic telecommunications services and value-added telecommunications services. 


Basic telecommunications services refer to business activities which use fixed network, mobile network, satellite, and internet to offer voice communication services, as well as business activities which sell or rent broadband, wave length and other network elements.


Value-added telecommunications services refer to business activities which use fixed network, mobile network, satellite, internet, and cable TV network to offer massage and multimedia message services, transmission and application services of electronic data and information, and Internet access services. The satellite TV signal landing transfer services shall be subject to VAT as  value-added telecommunications services. 


. Time requirement for the VAT-for-BT reform of services in the telecommunications industry 


From June 1, 2014, taxpayers of the pilot project who provide services in the telecommunication industry shall, in accordance with the tax provisions of value-added tax, carry out financial accounting, issue invoices which are supervised and issued by state taxation authorities, and file tax returns and pay value-added tax to the in-charge state taxation authorities in the prescribed time limit. 


. State taxation bureaus are responsible for the collection and administration of value-added tax on services in the telecommunications industry after the VAT-for-BT reform.


. Taxpayers of the pilot project shall cooperate with the state taxation authorities and do the following basic work well


(i) Confirmation of tax related basic information. All the taxation authorities shall carry out investigation, confirmation, supplement, collection and other work for the basic information received from taxpayers of the pilot project who have participated to give support and cooperation. The document for specific requirements of the investigation work shall be separately issued.


(ii) Tax registration. For taxpayers belonging to the scope of the pilot project of VAT-for-BT reform, they shall go to the local taxation authorities for tax registration before May 20, 2014. If they fail to receive the notice of tax registration from state taxation authorities, they can go to the tax service hall of local taxation authorities on their own for consulting and registration.


(iii) Set up a file for the administration of state tax levy & collection. Taxpayers of the pilot project shall go to the in-charge state taxation authorities as required in time to identify categories of taxes, to accredit the qualifications of general taxpayers, to approve the type of invoices, to apply for the printing and making of labeled invoices, to set up tax-control systems, to purchase invoices, to apply for tax preference, to register for export tax refund and exemption, to file tax returns online, to pay taxes online by networking of the revenue-treasury-bank, to check and ratify individual quota, and to deal with other tax related matters, thus cooperating with the government organs to set up a file for the administration of tax levy & collection for the pilot project taxpayers and for data entry.


() Business training. Taxation authorities at all levels shall carry out the special training of VAT-for-BT reform for taxpayers of the pilot project free of charge before May 31, 2014. Taxpayers of the pilot project shall actively participate in the training to learn and get familiar with the relevant policies, rules and regulations for the administration of tax levy & collection of VAT-for-BT reform.


. Policy consultation. For taxpayers of the pilot project who need to understand the policy and tax related matters of VAT-for-BT reform, they can consult the local state taxation authorities initiatively, and call tax service hotline - 12366 or consult the special column of VAT-for-BT reform from logging in the portal of Sichuan State Taxation Bureau (http:// 


The announcement is hereby given as above.


Sichuan State Taxation Bureau


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