- Home ›
- Significant retrospective changes introduced to clar...
Significant retrospective changes introduced to clarify VAT reform policies
Significant retrospective changes introduced to clar...
China Tax Alert - Issue 38, December 2016
On 21 December 2016, China’s Ministry of Finance (MOF) and State Administration of Taxation (SAT) jointly issued Circular Caishui [2016] 140 (Circular 140) which sets out new Value Added Tax (VAT) rules applicable to those sectors which recently transitioned from Business Tax (BT) to VAT, being financial services, real estate and construction services, and lifestyle services. Circular 140 clarifies a number of uncertainties which have arisen in practice, and assists taxpayers by overcoming some of the previous inconsistencies in interpretation which have occurred between tax authorities at a local level. Importantly, Circular 140 takes effect from 1 May 2016, meaning that its impact will affect all transactions from the inception of the VAT reforms.
© 2025 KPMG Huazhen LLP, a People's Republic of China partnership, KPMG Advisory (China) Limited, a limited liability company in Chinese Mainland, KPMG, a Macau (SAR) partnership, and KPMG, a Hong Kong (SAR) partnership, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
The KPMG name and logo are trademarks used under license by the
independent member firms of the KPMG global organisation.
For more detail about the structure of the KPMG global organisation please visit https://kpmg.com/governance.
Connect with us
- Find office locations kpmg.findOfficeLocations
- kpmg.emailUs
- Social media @ KPMG kpmg.socialMedia
Stay up to date with what matters to you
Gain access to personalized content based on your interests by signing up today