Advisory

Tuesday, 16 July 2013

Notification of Value Added Tax


Dear MOL Customer,

In a joint circular Cai Shui [2013] No.37 (Link : Circular 37) Notice on Tax Policy Concerning Nationwide Implementation of VAT Pilot Program for Transport and Modern Services Sectors dated on May 24th, 2013, the Ministry of Finance (MoF) and the State Administration of Taxation (SAT) announced that the Value Added Tax (VAT) pilot program will be expanded nationwide on August 1st, 2013. Concurrently, our existing tax policies for the initial pilot will be repealed on August 1st, 2013. Thus, MOL, defined as an international transport agency, will be taxed a VAT at the rate of 6% in accordance with the tax rate applicable to the logistics auxiliary industry.  This VAT is collected from clients on behalf of the government, and remitted to the government.

In line with the implementation of Cai Shui [2013] No.37 circular, MOL would like to announce that from August 1st, 2013, a value added tax (VAT) of 6%and other supplementary taxes related to the VAT, where applicable, will be applied for all the ocean freight and charges payable within the PRC. For customers who request to issue the VAT invoice, the effective date will be the issue date of the VAT invoice while for customers who do not request to issue the VAT invoice, the effective date will then be the payment date.

We thank you for your support for MOL as always. If you have any question or concern on this notice, please feel free to contact our local offices.

Yours sincerely,

MOL (China) Co., Ltd.

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