Indirect taxes – value-added tax (VAT), business tax (BT), consumption tax, and customs duties – accounted for almost 75 percent of the collective total tax revenue derived from China in 2011. As such, the management of indirect taxes is an important issue for businesses in China.
With VAT and BT – the two major forms of indirect taxes – now undergoing reform, commencing with a pilot programme in Shanghai in 2012, indirect taxes have taken on even greater significance. KPMG has a Centre of Excellence dedicated to assisting clients with VAT reforms and their indirect tax needs.
KPMG differentiates itself by assisting clients to recognise that these reforms are a key management issue rather than simply a technical tax issue. As the VAT reforms affect businesses across a number of areas, expertise and assistance across a broad skill set is imperative: pricing to contracts; IT and system changes to training and project management; supply chain management to negotiations with key suppliers; and the management of important customer relationships. Our experience in implementing VAT reforms enables us to bring these skill sets together and add value to your business.