Notice On the adjustment of VAT to the importation of aircraft
On 29 Aug 2013, the MOF and SAT jointly released a notice, Caiquanshui(2013) no. 53 to publish the VAT adjustment to the importation of aircraft. According to this circular, from 30 Aug 2013, aircraft importation with a net weight of 25 tons and above shall be subject to VAT at 5% instead of 4%.
Notice On temporary VAT and BT exemption on certain Small and Micro-sized enterprises.
The SAT issued an announcement, Announcement (2013) No. 49 on 21 Aug 2013, specifying the temporary measures on VAT and BT exemption of certain small and micro-sized enterprises.
According to the Announcement, for enterprises having monthly sales above RMB 20,000 shall be subject to VAT/BT, whiles for those entities or enterprises with monthly sales not exceeding RMB20,000 shall be temporarily exempted from VAT/BT.
In addition, small scale VAT taxpayers or BT taxpayers who are taxed on a quarterly basis and having quarterly turnover of RMB60,000 or below shall be exempted from VAT/BT on a provisional basis.
Also, for those enterprises that are small-scale VAT taxpayers and in the meanwhile engage in BT taxable services shall separately account for the VAT taxable sales and BT taxable sales amount.
VAT exemption on cross-border services under the VAT reform
Currently, the BT to VAT reform nationwide provides zero-rated treatment and exemption from VAT to certain cross-border services. SAT has just issued a circular Notice (2013) No. 52 (Circular 52) clarifying criteria and procedure for cross-border services eligible for VAT exemption. We have listed out the key areas for the VAT exemption treatment under circular 52 as following,