• Service: Tax, Indirect Tax, China Tax Services
  • Type: Publication series, Regulatory update
  • Date: 2/6/2013

Framework for VAT grouping for branches released 

China Tax Alert - Issue 3, February 2013


The Ministry of Finance (MoF) and the State Administration of Taxation (SAT) jointly issued Circular Caishui [2012] 84 (“Circular 84”) (dated 31 December 2012) setting out the substantive framework under which head offices and branches may be eligible to group for Value Added Tax (VAT) purposes. This Circular will be beneficial to companies with multiple branches in different cities and provinces across mainland China, and for multinational and other large companies wishing to exercise greater controls over the indirect tax compliance of their branches. It will also be beneficial to businesses with branches with excess input VAT credit balances.


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