Exemption of Value-Added Tax on Cross-Border Taxable Acts after the Replacement of Business Tax with Value-Added Tax

 2018-06-12  4


Announcement of the Beijing Municipal Office of the State Administration of Taxation on Issues concerning the Administration of Exemption of Value-Added Tax on Cross-Border Taxable Acts after the Replacement of Business Tax with Value-Added Tax


· Document Number:Announcement No. 15 [2016] of the Beijing Municipal Office of the State Administration of Taxation

· Area of Law: Taxation

· Level of Authority: Local Regulatory Documents

· Date issued:05-19-2016

· Effective Date:05-01-2016

· Status: Effective

· Issuing Authority: Beijing Municipal Office, State Administration of Taxation

 

Announcement of the Beijing Municipal Office of the State Administration of Taxation on Issues concerning the Administration of Exemption of Value-Added Tax on Cross-Border Taxable Acts after the Replacement of Business Tax with Value-Added Tax
(Announcement No. 15 [2016] of the Beijing Municipal Office of the State Administration of Taxation)
In accordance with the Announcement of the State Administration of Taxation on Issuing the Measures for the Exemption of Value-Added Tax on Cross-Border Taxable Acts after the Replacement of Business Tax with Value-Added Tax (for Trial Implementation) (Announcement No. 29 [2016], SAT, hereinafter referred to as the “Announcement No. 29”), issues concerning the exemption of value-added tax (“VAT”) on cross-border taxable acts (hereinafter referred to as “cross-border acts”) under the pilot program of replacing business tax with VAT in Beijing Municipality are hereby announced as follows:
I. Either of the following materials may be taken as a certification material proving that the service locations are located outside China, which shall be submitted by a taxpayer in accordance with paragraph 4 of Article 5 and Item (3) of Article 8 of the Measures for the Exemption of Value-Added Tax on Cross-Border Taxable Acts after the Replacement of Business Tax with Value-Added Tax (for Trial Implementation) (hereinafter referred to as the “Measures”) issued in accordance with Announcement No. 29:
(1) The written certification proving that service locations are located outside China, which are issued by the purchaser of the cross-border act (hereinafter referred to as the “purchase”) with the signature of the legal representative (person-in-charge) or the official seal of the purchaser as an entity.
(2) Where the relevant personnel of the seller of the cross-border act (hereinafter referred to as the “seller”) provide services abroad, the originals and photocopies of the Exit and Entry Record Inquiry Results concerning the main business personnel (one to three persons) of the seller during the period when such personnel provide services abroad as issued by the public security border inspection authority or exit-entry administrative department shall be submitted.
II. Either of the following materials may be taken as a certification material proving that the international or Hong Kong, Macao or Taiwan transportation business has actually occurred which shall be submitted by a taxpayer in accordance with Item (4) of Article 8 of these Measures:
(1) A freight waybill, which shall be submitted if the taxpayer provides freight transport services.
(2) A summary form or summary list for the information on actual revenues from carrying passengers,volume of passengers, place of departure and place of destination, which shall be submitted if the taxpayer provides passenger transport services.
III. Either of the following materials may be taken as a certification material proving that the purchaser as in institution is located outside China, which shall be submitted by a taxpayer in accordance with Item (5) of Article 8 of the Measures:
(1) A registration certification proving that the purchaser is located outside China.
(2) A written certification proving that the purchaser is located outside China as issued by a third-party institution.
IV. Where a taxpayer conducts any paid cross-border act for any overseas entity, it may fill out a Detailed List of Business Revenues Received from Conducting Paid Cross-Border Acts for Overseas Entities (see the Annex) on a monthly basis, and bind the lists into a book and keep them for future reference by the competent tax authority.
V. A taxpayer may download and print the Recordation Form for Tax Exemption on Cross-Border Taxable Acts as prescribed in Announcement No. 29 and the Detailed List of Business Revenues Received from Conducting Paid Cross-Border Acts for Overseas Entities (see the Annex) as prescribed in this Announcement via the website (http: //www.bjsat.gov.cn) of the Beijing Municipal Office of the State Administration of Taxation.
VI. Where a taxpayer conducts any taxable act as listed in Article 2 of Announcement No. 29, it shall, during the tax return filing periodwhen it enjoys tax exemption for the first time or in the current month after the tax return filing periodwhen it enjoys tax exemption for the first time, undergo the recordation formalities for tax exemption on cross-border taxable acts via the website of the Beijing Municipal Office of the State Administration of Taxation or with the competent tax authority.
VII. This Announcement shall come into force on May 1, 2016. The Announcement of the Beijing Municipal Office of the State Administration of Taxation on Reissuing the Issues concerning the Exemption of Value-Added Tax on Cross-Border Taxable Services after the Replacement of Business Tax with Value-Added Tax (Announcement No. 32 [2014], Beijing Municipal Office, SAT) shall be repealed concurrently.
Annex: Detailed List of Business Revenues Received from Conducting Paid Cross-Border Acts for Overseas Entities
May 19, 2016