Ref: HKG-2013-64

Latest Update on Value Added Tax (VAT)

Dear Customers,

In accordance with the new Circular 37 of Cai Shui [2013] on “Tax Policy of Value Added Tax (VAT) Pilot Program on Transportation & Modern Services Sector”, jointly issued by the Ministry of Finance (MOF) and the State Administration of Taxation (SAT) of P.R. China on 24 May 2013, the related VAT tax policy will be expanded nationwide with effect from 1 August 2013 onwards. Simultaneously, the regulations regarding the VAT pilot program effective since 1 January 2012 will be abolished.
 
        In light of the above, OOCL is defined as an international transport agency in China and as the general taxpayer of the logistics auxiliary industry, is subject to 6% VAT according to the new regulations. In compliance with the policies stipulated in the Circular 37 of Cai Shui [2013], an additional 6% Value Added Tax (VAT) and associated surtaxes*1 will be levied on top of the freight and surcharges payable at China as of 1 August 2013, based on the issuance date of the VAT invoice, while for customers who do not request for VAT invoice, the effective date will be based on payment date. However, should the concerned government authorities make any further change to the prevailing policies, we will correspondingly adjust the implementation and keep you apprised accordingly.
 
p.s. For the arrangement on VAT Invoice Issuance in China:
• South China (Guangdong, Guangxi, Guizhou, Yunnan and Hainan Provinces), please refer to our previous notice.
• Other than South China, please refer here

*1: VAT surtaxes include, but not limited to, City Construction Tax, Education Surtax, Local Education Surtax etc. and will vary according to the local tax regulation of the payment location in China. 
 

Please contact our Customer Service representatives, or visit www.oocl.com for any enquiries. Thank you for your understanding and continued support of OOCL.