Our 2021 guide notes continual steps being taken to bring about greater alignment between China’s VAT system and VAT/GST systems in common usage around the world. For example, it highlights important developments in the expansion of VAT refunds, which were previously largely limited to exporters.
Also on the horizon is a nationwide rollout of electronic invoicing, which initially began with B2C transactions before being piloted in B2B transactions by early 2021. This development will accelerate the shift away from paper-based invoicing and is expected to herald cost-saving opportunities for businesses, opening up the possibility for businesses to outsource this function together with VAT return filing processes.
Head of Global Indirect Tax Services, KPMG International
Indirect Tax Leader, KPMG China