Guangdong Gov’t Clarifies Tax Exemptions on VAT General Taxpayers
Aug. 12 – The Guangdong provincial government recently clarified a number of issues regarding tax exemptions on VAT general taxpayers.
Issued on August 6, Yueguoshuihan [2010] No. 513 stipulates that for general VAT taxpayers who currently engage in duty-free and other tax-exempted projects and cannot accurately calculate the amount of input tax which can be deducted, the tax authorities can adopt the annual liquidation measures for the tax deduction in accordance with the relevant regulations.
The notice provides that if the aforesaid taxpayers have an imbalance between the monthly purchases and sales and there is false deduction of input tax, the tax authorities can also adopt the annual liquidation measures.
For more information or tax advice in Guangdong Province, please contact Dezan Shira & Associates at tax@dezshira.com.
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