China to expand VAT reform to mail, telecom industries in 2014, report
BEIJING, Oct 24, 2013 (Xinhua via COMTEX) --
China is likely to expand the scheme
of replacing turnover tax with value-added tax (VAT) to the mail,
telecommunication or the living service industry at the beginning of
2014, the Economic Information Daily reported on Friday.
A source familiar with the top tax department said the State
Council, China's cabinet, would determine the next-step plan this
"There will certainly be a new move at the beginning of next year.
Whether it's the mail, telecom or the living service industry is not
yet settled," the newspaper quoted the unnamed source as saying.
The VAT reform, which first started as a pilot scheme on January
1, 2012, in Shanghai, was expanded to nationwide in the
transportation industry and six service sectors from Aug. 1 of this
The newspaper said China Telecom Hubei branch has started VAT
training programs after receiving notice from the headquarters that
the industry will see turnover tax replaced by VAT from early next
The mail and telecom industries now apply a 3-percent turnover
tax. The increase to a 11-percent VAT would exert significant
influence on the sectors.
Insiders say the VAT reform is to accelerate expanding into more
VAT refers to a tax levied on the difference between a commodity's
price before taxes and its production cost, while turnover tax refers
to a levy on a business's gross revenues.
(Edited by Zhang Yuenan, firstname.lastname@example.org)
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