營(yíng)業(yè)稅改征增值稅試點(diǎn)方案的進(jìn)一步擴(kuò)圍(外文翻譯)

1、<p><b>　　中文4187字</b></p><p><b>　　新知</b></p><p>　　中國稅務(wù)/商務(wù)新知 </p><p>　　2012年8月第21期</p><p>　　營(yíng)業(yè)稅改征增值稅試點(diǎn)方案的進(jìn)一步擴(kuò)圍</p><p>　　201

2、2年7月25日國務(wù)院總理溫家寶主持召開國務(wù)院常務(wù)會(huì)議正式?jīng)Q定，自2012年8月1日起至年底，將自2012年1月1日起已在上海進(jìn)行的交通運(yùn)輸業(yè)和部分現(xiàn)代服務(wù)業(yè)營(yíng)業(yè)稅改征增值稅試點(diǎn)方案("試點(diǎn)方案")范圍，分批擴(kuò)大至其他10個(gè)省市：北京、天津、江蘇、浙江、安徽、福建、湖北、廣東、廈門和深圳("10個(gè)新試點(diǎn)地區(qū)")。不僅如此，會(huì)議還決定，明年繼續(xù)擴(kuò)大試點(diǎn)地區(qū)，并選擇部分行業(yè)作全國試點(diǎn)。</p>

3、;<p>　　在本期《中國稅務(wù)/商務(wù)新知》中，我們將分析試點(diǎn)方案進(jìn)一步擴(kuò)圍至10個(gè)新試點(diǎn)地區(qū)后帶來的潛在影響，并分享我們的觀察。 </p><p><b>　　普華永道觀察</b></p><p>　　根據(jù)公開統(tǒng)計(jì)信息，2012年上半年10個(gè)新試點(diǎn)地區(qū)的生產(chǎn)地區(qū)的生產(chǎn)總值超過50%。地理上，這10個(gè)新試點(diǎn)地區(qū)各廣布在中國北部、中部、東部和南部地

4、區(qū)。因此，試點(diǎn)方案的進(jìn)一步擴(kuò)圍無疑會(huì)對(duì)中國下半年的宏觀經(jīng)濟(jì)發(fā)展產(chǎn)生很大影響。</p><p>　　總體而言，10個(gè)新試點(diǎn)地區(qū)的試點(diǎn)方案應(yīng)與上海的試點(diǎn)方案一直。自2012年1月1日上海開展試點(diǎn)方案以來，財(cái)政部和國家稅務(wù)總局出臺(tái)了一系列關(guān)于試點(diǎn)方案的政策和實(shí)施細(xì)則。理論上來說，除非將來有專門針對(duì)10個(gè)新地區(qū)的不同政策出臺(tái)，這些已出臺(tái)的政策文件應(yīng)該適用于所有試點(diǎn)地區(qū)。</p><p>　　在10

5、個(gè)新試點(diǎn)地區(qū)開展試點(diǎn)方案可能要面臨更為復(fù)雜的問題。與上海國稅合一的情形不同，這些地區(qū)的國稅局和地稅局各自管理，分別負(fù)責(zé)增值稅和營(yíng)業(yè)稅的征管。這樣可能出現(xiàn)各方對(duì)試點(diǎn)服務(wù)范圍有不同的理解，尤其是對(duì)那些未在現(xiàn)有規(guī)定中有清楚定義的試點(diǎn)服務(wù)。這可能對(duì)這些新試點(diǎn)地區(qū)的納稅人帶來更大的挑戰(zhàn)，特別是在營(yíng)業(yè)稅改增值稅的過渡時(shí)期。</p><p>　　同時(shí)，我們也期待上海試點(diǎn)中遇到的實(shí)際問題能夠進(jìn)一步予以明確。例如，進(jìn)一步明確某些在

6、現(xiàn)行辦法和法規(guī)中沒有明確定義的試點(diǎn)服務(wù)的范圍，特別是認(rèn)定某項(xiàng)咨詢服務(wù)是否屬于試點(diǎn)服務(wù)的范圍，從而向境外方提供上述咨詢服務(wù)時(shí)能夠享受免增值稅的處理；如何具體實(shí)施對(duì)符合條件的試點(diǎn)企業(yè)出口實(shí)行免抵退稅方法等問題以及如何將這10個(gè)新試點(diǎn)地區(qū)的基礎(chǔ)實(shí)際操作與上海保持一致。</p><p>　　雖然每個(gè)地區(qū)加入試點(diǎn)的具體時(shí)間還未確定，但試點(diǎn)方案很快在10個(gè)新試點(diǎn)地區(qū)推進(jìn)。根據(jù)最新消息，這10個(gè)新試點(diǎn)地區(qū)將分批最早在2012年

7、9月1日起啟動(dòng)試點(diǎn)。各地區(qū)啟動(dòng)試點(diǎn)方案的具體時(shí)間可能主要取決于當(dāng)?shù)刂鞴芏悇?wù)機(jī)關(guān)。北京很有可能從2012年9月1日起啟動(dòng)試點(diǎn)。我們建議這10個(gè)新試點(diǎn)地區(qū)的試點(diǎn)企業(yè)應(yīng)積極與地方主管稅務(wù)機(jī)關(guān)溝通，以便獲悉當(dāng)?shù)卦圏c(diǎn)方案啟動(dòng)日期的最新進(jìn)展。對(duì)這些納稅人而言，首先要做到的就是重新評(píng)估試點(diǎn)方案對(duì)自身的影響。</p><p><b>　　流轉(zhuǎn)稅改革的新動(dòng)向</b></p><p>　

8、　改革中國現(xiàn)有的流轉(zhuǎn)稅制毫無疑問是稅務(wù)機(jī)關(guān)所面臨的復(fù)雜且富有挑戰(zhàn)的過程。2009年初雖然稅務(wù)機(jī)關(guān)對(duì)流轉(zhuǎn)稅制做過一些規(guī)定上的修改，然而當(dāng)時(shí)所做的修改只是針對(duì)性地解決了一些問題但沒有徹底、全面地改善現(xiàn)行的流轉(zhuǎn)稅體制。今年初中央所發(fā)布的國家“十二五規(guī)劃”已將流轉(zhuǎn)稅制改革納入作為重要內(nèi)容。2011年7月8日國家財(cái)政部長(zhǎng)也就此問題發(fā)表講話。雖然以上信息沒有透露流轉(zhuǎn)稅制改革的細(xì)節(jié)內(nèi)容，但這些都反映了中國流轉(zhuǎn)稅改革已經(jīng)提上了中國政府的議事日程。

9、60;</p><p>　　眾所周知，下一步流轉(zhuǎn)稅改革的重點(diǎn)將是致力于整合現(xiàn)有的增值稅和營(yíng)業(yè)稅的征收范圍，而至于改革何時(shí)開始、具體包含什么內(nèi)容、哪個(gè)行業(yè)受到最大影響以及如何受到影響都還是未知數(shù)。本期的《中國稅務(wù)/商務(wù)新知》中我們將與您分享流轉(zhuǎn)稅改革的現(xiàn)狀和最新動(dòng)態(tài)以及我們的觀察。 </p><p><b>　　改革的推動(dòng)力</b></p>&l

10、t;p>　　事實(shí)證明中國現(xiàn)行的流轉(zhuǎn)稅機(jī)制是增加稅負(fù)的有效手段，然而現(xiàn)行機(jī)制也為納稅人帶來各種不便之處。比如，很明顯在現(xiàn)行體制下，流轉(zhuǎn)稅的稅負(fù)及責(zé)任都是由納稅人承擔(dān)。視乎納稅人是屬于增值稅納稅人或營(yíng)業(yè)稅納稅人或者兩者都是，各個(gè)行業(yè)納稅人都面對(duì)不同程度的雙重甚至多重征收和行政上的負(fù)擔(dān)。</p><p>　　與此同時(shí)，如何判斷一項(xiàng)交易是屬于增值稅征收范圍還是營(yíng)業(yè)稅征收范圍或兩者皆是非常模糊。通常，這種情況最后都取

11、決于稅務(wù)機(jī)關(guān)的解讀，從而造成現(xiàn)有稅制下某種程度上的不確定性和不可預(yù)見性。</p><p>　　還有一點(diǎn)要指出的是，中國正在進(jìn)一步的擴(kuò)大開放而中國親歷全球一體化的發(fā)展，繼而，商業(yè)交易也會(huì)趨于復(fù)雜并很多時(shí)候牽連到多方交易方。引申出的問題是中國現(xiàn)有的流轉(zhuǎn)稅稅制在面對(duì)這環(huán)境能否高效的征收稅收，同時(shí)合理地控制納稅人的申報(bào)和合規(guī)成本。</p><p>　　很明顯中國稅務(wù)機(jī)關(guān)針對(duì)上述情況聽取了納稅人和稅

12、務(wù)專業(yè)工作者的意見，開始意識(shí)到現(xiàn)有流轉(zhuǎn)稅稅制進(jìn)行改革的重要性。</p><p>　　我們了解到流轉(zhuǎn)稅改革將有財(cái)政部牽頭，并與國家稅務(wù)總局密切合作商討相關(guān)的執(zhí)行細(xì)節(jié)，然后與全國人民代表大會(huì)溝通并得到國務(wù)院的最終批準(zhǔn)</p><p>　　流轉(zhuǎn)稅改革將以何種方式啟動(dòng)？</p><p>　　流轉(zhuǎn)稅改革包括的內(nèi)容、啟動(dòng)的方式和時(shí)間等一直引發(fā)持續(xù)的爭(zhēng)辯和討論，目前為止，還未有定

13、論。</p><p>　　根據(jù)慣例，稅改正式實(shí)施之前可能會(huì)有財(cái)政機(jī)關(guān)實(shí)施一些試點(diǎn)項(xiàng)目，在新政策正式實(shí)施前，對(duì)一些具有廣泛影響的新政策進(jìn)行試點(diǎn)實(shí)踐。對(duì)于流轉(zhuǎn)稅改革來說，官方信息披露試點(diǎn)項(xiàng)目會(huì)首先服務(wù)業(yè)。從事交通運(yùn)輸、建筑安裝的企業(yè)推斷可能屬于這一范圍。我們理解試點(diǎn)項(xiàng)目會(huì)考慮三種不同的實(shí)施方案。</p><p>　　值得注意的是在其他地方政府對(duì)此試點(diǎn)項(xiàng)目沒有強(qiáng)烈的興趣和意愿的同時(shí)，上海對(duì)次改革

14、給予了積極配合。試點(diǎn)項(xiàng)目預(yù)計(jì)將實(shí)施于上海的各個(gè)行業(yè)，而有少數(shù)幾個(gè)行業(yè)將排除在試點(diǎn)范圍之外。事實(shí)上，這可能是可以加入考慮的另一實(shí)施方案。關(guān)于上海的試點(diǎn)項(xiàng)目的細(xì)節(jié)，如那些行業(yè)屬于試點(diǎn)范圍，那些還沒最終確定。據(jù)報(bào)告中國政府有意在2011年的下半年啟動(dòng)試點(diǎn)項(xiàng)目。</p><p>　　基于目前已公布的、以及從其他渠道獲得的可靠信息，我們認(rèn)為即將上海采用的試點(diǎn)方案所帶來的各種關(guān)注問題值得進(jìn)行進(jìn)一步的研究，包括：</p&

15、gt;<p>　　進(jìn)項(xiàng)抵扣政策僅適用于上海地區(qū)納稅人還是適用于全國范圍的納稅人？如原繳納營(yíng)業(yè)稅的某一上海納稅人，改繳納增值稅后，他的外地客戶在其所在地仍對(duì)服務(wù)業(yè)增收營(yíng)業(yè)稅的情況下，是否可以抵扣進(jìn)項(xiàng)稅額。</p><p>　　類似上述情況是否會(huì)產(chǎn)生擾亂市場(chǎng)秩序的風(fēng)險(xiǎn)？例如一上海之外的增值稅納稅人，受此政策啟示也許會(huì)選擇從上海本地的增值稅納稅人購買服務(wù)，而從前他是可能是從其自身所在地的營(yíng)業(yè)稅納稅人哪里購

16、買相同的服務(wù)。反之，原上海之外的營(yíng)業(yè)稅納稅人是否會(huì)停止從上海的增值稅納稅人這里購買服務(wù)而從其他地方的營(yíng)業(yè)稅納稅人那里購買服務(wù)。</p><p>　　試點(diǎn)改革給跨地區(qū)經(jīng)營(yíng)的企業(yè)帶來什么影響呢？如試點(diǎn)項(xiàng)目是否會(huì)適用于分支機(jī)構(gòu)，如總部不在上海但分布在上海的公司；總部在上海但分部不在上海的公司。</p><p>　　稅率會(huì)是統(tǒng)一的增值稅稅率、對(duì)不同的納稅人實(shí)行不同的稅率還是對(duì)不同的稅率？如果制定的

17、新的稅率，稅率將會(huì)是多少？統(tǒng)一增值稅的稅率能降低稅務(wù)機(jī)關(guān)的管理成本，使稅收的征管變得更高效，同時(shí)也減輕了納稅人的納稅申報(bào)負(fù)擔(dān)。</p><p>　　從企業(yè)管理體系角度，僅僅在一個(gè)地方推行流轉(zhuǎn)稅試點(diǎn)改革是否會(huì)影響到納稅人？比如，納稅人是否有足夠緊密健全的體系來應(yīng)對(duì)改革帶來的變化。如果答案是肯定的，他們是否又有充足的時(shí)間調(diào)整現(xiàn)有的管理體系為試點(diǎn)改革的推行做好準(zhǔn)備。</p><p>　　試點(diǎn)也可

18、能導(dǎo)致現(xiàn)金流的問題。在所建議的流轉(zhuǎn)稅改革下，原營(yíng)業(yè)稅納稅人將會(huì)使用增值稅抵扣政策。然而于此同時(shí)產(chǎn)生了現(xiàn)金流的負(fù)面影響，新的增值稅稅率可能高于當(dāng)前的營(yíng)業(yè)稅稅率，因而將產(chǎn)生增值稅進(jìn)項(xiàng)稅額和銷項(xiàng)稅額抵扣的時(shí)間差的風(fēng)險(xiǎn)。</p><p>　　如上所述，試點(diǎn)改革項(xiàng)目將是一次試驗(yàn)。最新進(jìn)展便是增加一個(gè)新的實(shí)施方案予以考慮。然而很明顯的是，即將推出的流轉(zhuǎn)稅改革在結(jié)構(gòu)上和形式上都會(huì)有所修改。納稅人應(yīng)密切留意這一流域并把握這個(gè)最佳

19、時(shí)間更好的理解和判斷他們的業(yè)務(wù)因改革而受到的影響，并采取必要措施為正式改革后的一系列變化做好準(zhǔn)備。</p><p>　　北京地區(qū)企業(yè)增值稅轉(zhuǎn)型試點(diǎn)的應(yīng)對(duì)指南</p><p>　　2012年7月25日，國務(wù)院宣布，在2012年8月1日至2012年年底期間，將加快擴(kuò)大增值稅轉(zhuǎn)型試點(diǎn)方案從上海增加到其他10個(gè)地區(qū)，包括北京，天津，江蘇，浙江，安徽，福建，湖北，廣東，廈門，深圳。北京現(xiàn)在作為增值稅

20、轉(zhuǎn)型試點(diǎn)方案的最后準(zhǔn)備階段，預(yù)計(jì)很快將公布試點(diǎn)規(guī)則。因此，我們建議，通過執(zhí)行以下幾點(diǎn)符合試點(diǎn)規(guī)則和優(yōu)化稅務(wù)相關(guān)利益的建議，受影響的企業(yè)應(yīng)讓其為即將到來的增值稅轉(zhuǎn)型有充分的準(zhǔn)備。</p><p>　　1. 安排工作計(jì)劃，并成立一個(gè)特別稅務(wù)組去應(yīng)付增值稅試點(diǎn)事項(xiàng)</p><p>　　受影響的企業(yè)可以考慮制定一個(gè)計(jì)劃，詳細(xì)介紹具體在開始階段要完成的工作和最后階段的每一個(gè)具體工作。工作計(jì)劃可以分為

21、以下幾個(gè)階段：在正式實(shí)施增值稅試點(diǎn)細(xì)則前的準(zhǔn)備階段，增值稅試點(diǎn)正式啟動(dòng)日期到增值稅首次申請(qǐng)日期之間的階段，增值稅首次申請(qǐng)后的三到六個(gè)月。對(duì)于大型企業(yè)或業(yè)務(wù)復(fù)雜的企業(yè)，它可以是適當(dāng)設(shè)立一個(gè)增值稅專門的團(tuán)隊(duì)來處理增值稅轉(zhuǎn)型試點(diǎn)事宜。</p><p>　　2. 為增值稅試點(diǎn)細(xì)則相關(guān)的人員提供內(nèi)部培訓(xùn)</p><p>　　考慮到在北京可能有很少的時(shí)間留給受影響的納稅人去學(xué)習(xí)和消化試點(diǎn)細(xì)則，這對(duì)北京

22、的受影響的大多數(shù)企業(yè)的財(cái)務(wù)或稅務(wù)部門將是一個(gè)巨大的挑戰(zhàn)。同時(shí)，增值稅轉(zhuǎn)型的試點(diǎn)方案影響企業(yè)如采購，營(yíng)銷，銷售，IT，法律，財(cái)務(wù)及稅務(wù)等各個(gè)方面。因此，我們建議，企業(yè)應(yīng)確保所有相關(guān)的員工就增值稅試點(diǎn)細(xì)則方面的有一個(gè)內(nèi)部培訓(xùn)課程。通過這樣做，企業(yè)可以更好地管理自己的增值稅轉(zhuǎn)型試點(diǎn)，降低由于未知或誤解增值稅試點(diǎn)規(guī)則帶來的稅務(wù)風(fēng)險(xiǎn)。</p><p>　　3. 上游和下游企業(yè)的協(xié)調(diào)與溝通（供應(yīng)商和客戶）</p>

23、<p>　　在試點(diǎn)期間，對(duì)受影響的企業(yè)與主要材料供應(yīng)商和客戶進(jìn)行密切和及時(shí)地的溝通是非常必要的。例如，通過與客戶溝通，讓客戶了解增值稅轉(zhuǎn)型試點(diǎn)方案對(duì)服務(wù)價(jià)格的影響與為客戶開具增值稅專用發(fā)票應(yīng)提供申請(qǐng)扣除的增值稅進(jìn)項(xiàng)稅額，可以理順業(yè)務(wù)關(guān)系和避免任何潛在的誤解和糾紛。因此，企業(yè)應(yīng)了解大客戶的信息，以便確認(rèn)客戶是否需要開具增值稅專用發(fā)票。增值稅轉(zhuǎn)型試點(diǎn)方案在上海的實(shí)踐表明，如果企業(yè)沒有與客戶事先就他們?cè)趹?yīng)對(duì)增值稅轉(zhuǎn)型試點(diǎn)方案的變

24、化進(jìn)行有效的溝通，就可能產(chǎn)生的爭(zhēng)議。</p><p>　　4. 關(guān)注在過渡期和過渡細(xì)則上的問題</p><p>　　從舊的稅收法律制度到新的稅收法律制度，去做一個(gè)的無縫過渡對(duì)稅務(wù)機(jī)關(guān)而言是一大挑戰(zhàn)。企業(yè)應(yīng)密切關(guān)注在過渡時(shí)期的問題和有關(guān)過渡性規(guī)則。例如，如何判斷從營(yíng)業(yè)稅過渡到增值稅的觸發(fā)點(diǎn)，即是否應(yīng)根據(jù)合同簽訂時(shí)的時(shí)點(diǎn)，還是在提供服務(wù)時(shí)，或者服務(wù)開具發(fā)票時(shí)，抑或當(dāng)支付服務(wù)費(fèi)時(shí)。此外，如果有任

25、何服務(wù)價(jià)格在增值稅試點(diǎn)規(guī)則的生效日期時(shí)或之后的調(diào)整，企業(yè)應(yīng)當(dāng)采取考慮到潛在的增值稅退稅。鑒于客戶可能仍然需要轉(zhuǎn)換日期后的營(yíng)業(yè)稅發(fā)票，但就所提供的服務(wù)在該日期之前，受影響的企業(yè)可能仍然需要保留營(yíng)業(yè)稅發(fā)票（發(fā)票）設(shè)備，使?fàn)I業(yè)稅發(fā)票（fapiaos）可能發(fā)行。</p><p>　　News Flash</p><p>　　China Tax/Business News Flash &l

26、t;/p><p>　　August 2012   Issue 21</p><p>　　Further roll-out of the VAT Transformation Pilot Program</p><p>　　Our China&

27、#160;Indirect Tax Team Contacts ：</p><p>　　Northern China Alan Wu </p><p>　　Tel: +86 (10)6533 2889 alan.wu@cn.pwc.com Central Chi

28、na Robert Li </p><p>　　Tel: +86 (21) 2323 2596 robert.li@cn.pwc.com Liang Gong </p><p>　　Tel: +86 (21) 2323 3824 l

29、iang.gong@cn.pwc.com Southern China Janet Xu </p><p>　　Tel: +86 (20)3819 2193 janet.xu@cn.pwc.com Cindy Li </p><p>　　Tel: +86

30、0;(755)8261 8151 cindy.j.li@cn.pwc.com LS Goh </p><p>　　Tel: +852 2289 5609 liang.s.goh@hk.pwc.com</p><p>　　Following the launch of

31、60;the Business Tax (“BT”) to Value Added Tax (“VAT”) Transformation PilotProgram (“Pilot Program”) for the transportation industry and

32、 certain modern service industries in Shanghai effective from 1 January 2012, the State Council has now approved expanding th

33、e Pilot Program to 10 other provinces and municipalities: Beijing, Tianjin, Jiangsu, Zhejiang, Anhui, Fujian, Hubei, Guangdong, Xiamen&

34、#160;and Shenzhen (hereinafter referred to as “10 New Pilot Regions”) in batches from 1 A</p><p>　　In this issue of o

35、ur News Flash, we would like to highlight the potential impacts arising from the expansion of the Pilot Program to the&#

36、160;10 New Pilot Regions and share our observations. </p><p>　　PwC Observations</p><p>　　? According to public information a

37、nd statistics available on line2, it is estimated that the total GDP of the 10 New Pilot Regions accounts for over 

38、50% of the total GDP of China in the first half of 2012.  Geographically, these 10 New Pilot Regions spread over

39、60;Northern, Central, Eastern and Southern China.  Therefore, the roll-out of the Pilot Program will definitely impact the develop

40、ment of the macro economy in China in the next half of this year.  </p><p>　　? In general, the scheme of

41、60;the Pilot Program to be rolled out to the 10 New Pilot Regions should be in line with the scheme currently imple

42、mented in Shanghai.  With the Pilot Program launched in Shanghai from 1 January 2012, the Ministry of Finance (“MOF”) an

43、d the State Administration of Taxation (“SAT”) have issued a series of circulars providing the detailed policies and implementatio

44、n rules3 in this respect.  These circulars are technically applicable to all the Pilot Regions including the 1</p><p>

45、;　　? It could be more complicated for the 10 New Pilot Regions to launch the Pilot Program as compared with Shanghai

46、0;as they have separate State Tax Bureau (“STB”) and Local Tax Bureau (“LTB”) administering VAT and BT respectively instead o

47、f a unified one in Shanghai.  In this respect, it is possible that different parties could be interpreting Pilot Service

48、s differently, particularly for those Pilot Services which are not well defined in the existing measures and rules.  This

49、0;would present more co</p><p>　　? Meanwhile, it is expected that there could be further guidelines to clarify the unclear

50、 practical issues in Shanghai (e.g., to further clarify the scope of some Pilot Services that have not been clearly defi

51、ned in the existing measures and rules, especially whether certain consulting services fall within the scope of Pilot Services

52、0;and hence eligible for VAT exemption when the said consulting</p><p>　　service is provided to a foreign party; how to

53、60;reinforce the implementation of the “exempt, credit and refund” treatment for exports by qualified Pilot Enterprises, etc.) as 

54、well as align the Shanghaipractice with the local implementations in the 10 New Pilot Regions.  </p><p>　　? The Pilot

55、 Program will be rolled out to the 10 New Pilot Regions very soon, although the timing for rolling out it in e

56、ach region is not confirmed yet.  According to our latest intelligence, the roll-out to the 10 New Pilot Regions may

57、0;be carried out in several batches effective from 1 September 2012 the earliest.  The timing for each region is now

58、0;up to the respective local-level authorities.  It is expected that Beijing will roll out the Pilot Program from 1 Sept

59、ember 2012.  It is therefore </p><p>　　Where China's indirect tax reform stands</p><p>　　Reforming the existing indirect tax system in China is, without doubt,

60、a complex and challenging process confronting the Chinese tax authorities.  While we witnessed some changes to the indirect tax rules in early 2009, such changes were ad hoc in nature and not necessarily designed to

61、 radically overhaul or otherwise rectify some of the perceived inefficiencies in the existing indirect tax system.  Earlier this year, indirect tax reform was incorporated into the State's 12th Five-year Plan.&#

62、160; On </p><p>　　Impetus for the reform</p><p>　　While there is evidence to strongly suggest the existing indirect tax system in China is an effective means of raising tax revenue,it neverthele

63、ss poses a variety of difficulties for taxpayer. For instance, it is an inevitable feature of the current system that the indirect tax burden ultimately imposed on taxpayers,both double taxation and administrative,vary c

64、onsiderably from induatry,depending on whether they fall within scope of VAT,BT or both.</p><p>　　There can also be,at times, significant levels of ambiguity as to whether a particular type of transactions w

65、ill be within the ambit of VAT,BT or both.Often,this is open for interpretation and creates a level of unpredictability and uncertainty under the existing regime.</p><p>　　Last but not least,as China continu

66、es to gradually open its borders to the rest of the world,we are witnessing signs of an evolving globalised economy which,in turn,brings about the introduction of complex and sophisticated transsactions,often involving m

67、ultiple parties.Thus the question arises as to whether the existing indirect tax system in China is adequately equipped to deal with such types of transactions in both a tax efficient and effective manner,while at the sa

68、me time keeping administr</p><p>　　With this in mind,itappears the Chinese tax authorities have been listening to the calls of taxpayer and tax practitioners and have begun to recognise the importance of ref

69、orming the current indirect tax system.</p><p>　　It is our understanding that the Ministry of Finance is taking the lead with respect to the reforms,working closely together with the State Administration of

70、Taxation on the implementation details.They,in,turn,will communicate with the National People's Congress,with final approval to come from State Council.</p><p>　　What are the proposed reforms likely to e

71、ntail,how and when will they be introduced?</p><p>　　The captioned questions have been subject to ongoing debate and discussion and have been,at least to date,difficult to determine with any great degree of

72、certainty.</p><p>　　It has been a usual practice for the Chinese fiscal authorities to implement some pilot programs to essentially serve as a test run for some wide-impact new policies before they are forma

73、lly implemented.As far as the indirect tax reform is concerned,it was firstly envisioned that a pilot program would be introduced for the production service industries,which is a jargon appearing in the official informat

74、ion but yet to be clearly defined.Speculation has indicated this to include transportation,co</p><p>　　It is interesting to note that while no other local governments have demonstrated a strong interest or w

75、illingness to participate in the pilot program,ShangHai has proactively put itself forward.A tial run is expected to apply on various industries in Shanghai with a few to be specifically excluded.Essentially,one more mod

76、el is then being added for consideration.However,specific details of the Shanghai pilot program,such as which industries are to be included or ercluded,are still yet to be conf</p><p>　　Base on the informati

77、on available at public domains and reliable sourcesto date,we consider the latest model,yet to be adopted by Shanghai,to give rist to various concerns which may warrant further consideration,including:</p><p&

78、gt;　　Would input credits be limited to Shanghai taxpayers only or would they extend nationwide?For instance, in respect of a Shanghai VAT payer which was previously subject to BT,would its customers outside Shanghai be a

79、ble to claim an input credit not with standing they are based in a location where such a service would otherwise still be subject to BI.</p><p>　　IF this is the case,does this create the risk of market disto

80、rtions?For instance,would a customer outside Shanghai,who is a VAT payer,be incentivized such that it may opt to buy service from a Shanghai VAT payer as opposed to buying the same services from an otherwise BI payer in

81、home location?On the contrary,would a customer outside Shanghai,who is a BI payer stop buying services from a Shanghai VAT payer and buy from BT payer in another location.</p><p>　　How would entities with br

82、anch structures be impacted?For instance,will thepilot program extend to corporate structures where headquarter are in Shanghai but branches are not in Shanghai but branch is in Shanghai or headquarters are in Shanghai b

83、ut branches are outside Shanghai.</p><p>　　Would there be one VAT rate,different rates for different taxpayer or different rate for different services?And,if there is a new rate,what will it be?A single stan

84、dard rate may enable tax revennue to be collected in a more efficient manner by lowering the administration costs for the tax authorities,while at the same time to make any system changes inreadiness for the introduction

85、 of the pilot program.</p><p>　　Case flow issues may also possibly arise.For instance,under the proposed reforms,a former BT payer would be able to recover input VAT.However,this,in turn,may also create a ne

86、gative cash flow impact where by the new VAT rate rate is likely to behigher than the current BT rate and therefore there is a risk of a timing difference between incurring input VAT and the time in which it is credited

87、against output VAT. Timing difference between incurring input VAT and the time in which it is credited ag</p><p>　　As mentioned above,it was envisaged that pilot program would be used as a test run.The lates

88、t developments added a new model to beconsidered for the pilot program.Details of the final pilot program are not available yet and we may witness on going debate,discussion and possibly more suggestions to the pilot pro

89、gram being put forward.</p><p>　　Nevertheless,it is clearer to see that the existing indirect tax system will be revised in some shape or form in the near future.With this in mind,now may be the ideal time f

90、or businesses to better understand and assess how they may be impacted by the proposed changes and,in turn,take the necessary steps to be ready for the changes as and when they finally arrive.</p><p>　　Tips

91、on How to Deal With the Upcoming VAT Transformation Pilot (for Enterprises in Beijing)</p><p>　　On 25 July 2012, the State Council announced that it shall expedite to extend the VAT transformation pilot prog

92、ram from Shanghai to other 10 regions, including Beijing, Tianjin, Jiangsu, Zhejiang, Anhui, Fujian, Hubei, Guangdong, Xiamen and Shenzhen, during the period of 1 August 2012 to the end of 2012. Beijing is now on the fin

93、al stage of the preparation of the VAT </p><p>　　transformation pilot program and it is expected that the pilot rules will be published very soon. Therefore, we suggest that the affected enterprises shall ha

94、ve them to be well prepared for the upcoming VAT transformation by performing the following several tips, with a view to comply with the pilot rules and optimize their tax related interests. </p><p>　　1.Sch

95、edule a work plan and set up a special tax team to deal with the VAT pilot matter </p><p>　　The affected enterprises may consider working out a plan, detailing the specific work to be completed in the corres

96、ponding period and the deadline for every specific work. The work plan can be divided into the following phases: the preparation phase before the official implementing of the VAT pilot rules, the phase between the offici

97、al start date of the VAT pilot and the first filing date of the VAT return; the subsequent three to six months. For the large-scale enterprises or the enterprises wi</p><p>　　2.Provide internal training on t

98、he VAT pilot rules for the relevant staff </p><p>　　Given that there may be very little time left for the affected taxpayers in Beijing to study and digest the pilot rules, it will be a great challenge for t

99、he financial / tax department of the most affected enterprises in Beijing. Meanwhile, the VAT transformation pilot program shall impact all aspects of the enterprises such as procurement, marketing, sales, IT, legal, fin

100、ancial and tax and so on. Therefore, we suggest that the enterprises shall ensure all related employee to have a training cou</p><p>　　3.Coordination and Communication with the upstream and downstream enterp

101、rises (suppliers </p><p>　　and customers) </p><p>　　In the period of the pilot, it is very necessary for the affected enterprises to make timely and closely communication with the major material

102、 suppliers and customers. For example, it may smooth the business relationship and avoid any potential misunderstanding and disputes, by communicating with clients to let the clients understand how the VAT transformation

103、 pilot program impact the service price and the special VAT invoice shall be available for the clients to claim the deduction of the input</p><p>　　4.Pay attention to the issues in the transitional period an

104、d the transitional rules </p><p>　　It has been a big challenge for the tax authority to make a seamless transition from the old tax law system to the new tax law system. The enterprises shall pay closely att

105、ention to the issues in the transitional period and the relevant transitional rules. For example, how to judge the trigger point for transitioning from BT to VAT, i.e., whether it should be based on the time when the con

106、tract is signed, when the services are performed, when the services are invoiced, or when the service fee is</p><p>　　**************************************</p><p>　　Our China Indirect

107、 Tax Team will host a series of client seminars in selected locations across China (Beijing, Shanghai, Guangzhou, Shenzhen, H

108、ong Kong, Chongqing, Suzhou and Tianjin) shortly to share further information and intelligence with our clients.  Also, we wi

109、ll provide publications, analysis and impact studies covering tax and business issues that may be faced by enterprises as res

110、ulted from the Pilot Program.  Please stay tuned for our China Tax and Business News Flash and other public</p><p&

111、gt;　　**************************************</p><p>　　To make enquiries about our China tax and business advisory services, please feel free

112、60;to contact the following lead specialist partners: </p><p>　　Financial Services  Matthew Wong   matthew.mf.wong@cn.pwc.com &

113、lt;/p><p>　　Transfer Pricing  Spencer Chong  spencer.chong@cn.pwc.com </p><p>　　Indirect Tax  Alan Wu  alan

114、.wu@cn.pwc.com </p><p>　　Mergers & Acquisitions  Nick Dignan  nick.dignan@hk.pwc.com </p><p>　　China Business & Investment

115、 Advisory  Anthea Wong  anthea.wong@cn.pwc.com </p><p>　　International Tax Services   Edwin Wong   edwin.wong@cn.pwc.com </p>

116、<p>　　Domestic Enterprises Tax Services   Elton Huang  elton.huang@cn.pwc.com </p><p>　　Customs & International Trade  Damon Pa

117、ling  damon.ross.paling@cn.pwc.com </p><p>　　Registration & Corporate Compliance   Matthew Wong  matthew.mf.wong@cn.pwc.com </p><p>　　

118、Tax Accounting Services  Terry Tam   terry.sy.tam@cn.pwc.com </p><p>　　Value Chain Transformation  Steven Tseng  steven.tsen