CHINA CLARIFIES VAT RATE FOR INTERNATIONAL CARGOES TRANSPORT AGENCIES SERVICE
On July 4, the State Administration of Taxation (SAT) released the “Announcement on Value-Added Tax (VAT) Issues in International Cargo Transport Agency Service (SAT Announcement [2014] No. 42).” According to the Announcement, taxpayers indirectly engaged in agent services such as international cargo transport, transportation tools entering and departing the port, pilotage arrangement and loading & unloading shall be exempt from VAT. The announcement will take effect on September 1, 2014.