Since 1 May 2018, the VAT rates are adjusted down as below:
a) Manufacturing industry: reduced from 17% to 16%
b) Transportation, construction, basic telecommunication services industries and agricultural produces: reduced from 11 % to 10%.
Lee & Lee Associates Insights:
VAT payers should pay attention to below issues:
1) New rates should be applied to any new purchase and sales contracts.
2) VAT rates on revenue after 1 May 2018 for old contacts should be adjusted.
3) VAT input certification for old VAT rates should still be completed within 360 days from the date of the issuance.
4) Reissuance of VAT official receipts for those with old rates should still adopt the old rates.
