VAT on China freight charges

31 July 2013

New rules have been issued by the Ministry of Finance and State Administration of Tax in China regarding the application of VAT to ocean transport services. The majority of carriers have confirmed that they will start to debit 6 % VAT on all charges payable in China. In order to avoid the payment of VAT, the ocean rate should be payable at destination. 

There is a great deal of uncertainty about the application of the new rules and carriers are seeking clarification with Ministry of Finance and State Administration of Tax. Until clarification has been obtained current arrangements will remain in force.

 Update supplied by Future Forwarding.