The VAT pilot program for the transport sector and some services sectors was rolled out across China on Aug. 1. According to the feedbacks from local state tax bureaus, regions newly included in the program issued the first VAT special invoice and plain invoice in the earliest morning of Aug. 1, with all business functions verified and application systems running normally, marking the successful nationwide rollout of the program for the transport (excluding railway transport) sector and some modern services sectors and replacement of an old tax system with a new tax system.

State tax bureaus identified 736077 taxpayers have been newly included in the pilot program to date, including 307756 taxpayers (25109 general taxpayers) in the transport sector, and 420717 taxpayers (45014 general taxpayers) in some modern services sectors from 22 new pilot provinces (regions and cities) and 7604 taxpayers in the radio, film and television services sector from the nine provinces (cities) which started the pilot last year.

Great importance has been attached to the nationwide expansion of the VAT pilot program across the taxation system. To ensure the smooth rollout on Aug. 1 and success of the reform, the SAT sent 11 inspection teams over to 22 regions newly included in the program from July 29 to Aug. 1 to supervise and review preparations for the nationwide rollout via on-site inspections and gradual streamlining. Wang Jun, SAT administrator, went to Shanxi for review and inspection.

Based on the experiences from the pilot program that was initially operational in selected regions, the SAT will divide the rollout into 66 assignments in ten aspects and organize the implementation one by one. Meanwhile, regions already included in the pilot program are required to provide assistance to the regions to be included in the pilot program. Tax bureaus at various levels should develop detailed schemes, segment and allocate tasks in line with the three philosophies, seven priorities and five requirements set by the SAT to steadily advance the preparatory work before the rollout. This nationwide rollout has the following features:

First, the rollout is well prepared. The VAT pilot program is expanded across the country by industries, with more industries included to create a one-plus-six-industry model and efforts made to advance stable transformation. Given the new characteristics, tax bureaus have made good preparatory work and done well in data investigation estimates, tax source transfer verification, tax collection materials transfer, hardware facilities allocation, software system upgrade, invoice sales and supply, and business staff training.

Second, promotion measures are in place. In the principle of offering satisfactory and convenient tax services, tax bureaus have become more rigorous in promoting the VAT pilot program. They timely inform taxpayers about changes in tax collection, focusing on playing the role of a window of tax services and strengthening training on taxpayers via tax revenue administrators to promote tax services, offer instructions, and explain questions concerning tax collection to reduce impacts on taxpayers' production and operation. On the other hand, they pay close attention to public opinions released online and timely respond to social concerns, expounding the meaning and effects of the reform via the 12366 hotline for taxpayers, tax websites and various media.

Third, cautions are taken against issuing false invoices to dodge taxes. Led by the SAT, local tax bureaus conduct centralized inspections to investigate on risks associated with the nationwide rollout of the VAT pilot program, strengthen tax sources monitoring, enhance tax assessment, and conduct checks more rigorously to control risks associated with the rollout and create a favorable tax environment for the smooth operation of the reform.

New pilot regions have seen all the preparatory work progress in an orderly manner with their own characteristics. Shanghai State Tax Bureau focuses on the transition from old to new policies, offers one-on-one coaches and carries out risk management to identify and contain blind spots. Jiangsu State Tax Bureau focuses on making explanations to a small number of enterprises with rising tax burden and firmly implementing the transitional policies. Shandong State Tax Bureau has deepened cooperation with fiscal and local tax bureaus on tax source identification, dispatching 500 persons to local tax bureaus to identify taxpayers, making sure no information is missed. Inner Mongolia Autonomous Region has attached great importance and arranged for the VAT pilot program among related departments as a political task.

Regions across China issued the first VAT invoice one after another at zero in the morning of Aug. 1. Tibet Jihang Logistics Co., Ltd. and Songfu Advertisement issued the first VAT special invoices for the cargo transport industry and the modern services sector at zero in the morning. At one minute past zero, In Urumqi, the capital city of Xinjiang Uyghur Autonomous Region, Xintai Changtong Transport Co., Ltd. issued the first VAT special invoice for the cargo transport industry in Xinjiang. At five minutes past zero, Heilongjiang Tongxin Communications Planning and Design Co., Ltd., the taxpayer subject to the VAT pilot program in Harbin, Heilongjiang, issued the first VAT special invoice for the modern services sector subject to the tax rate of 6% at Harbin Economic Development Zone State Tax Service Hall. At eight minutes past zero, Sichuan Airlines Co., Ltd. issued the first VAT special invoice and Sichuan Provincial Logistics Industrial Co., Ltd. issued the first VAT special invoice for the goods transport sector at the tax service hall of the branch tax bureau of Sichuan State Tax Bureau. At 17 minutes past zero, the first VAT invoice for the goods transport sector withheld for small-scale taxpayers was issued. At 30 minutes past zero, Chongqing State Tax Bureau withheld the first VAT special invoice for the goods transport sector for Xufeng Logistics Co., Ltd., a new firm subject to the VAT pilot program, using the core levying system for the Golden Tax Project Phase III, and the first VAT special invoice for the modern services sector for Lingdian Cultural Communications Co., Ltd.

As the VAT pilot program is expanded across China, the reform will involve more regions and more taxpayers, and will be more complex, and tax bureaus will further strengthen follow-up management to make sure taxpayers subject to the program will file returns smoothly on Sep. 1.

The above are the Gold Brand Consulting limited collection arrangement,Please give sources if someone likes to quote,you can contact customer service  for any business and call to 020-61133120 in any times,thank you!