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One-percent Down Slight Adjustment on VAT

Released by State Administration of Taxation in early April and was effective from May 1, 2018, the value-added tax rate was slightly adjusted 1% down from 17% to 16%.

This made the aggregate tax (custom duty + consumption tax + value-added tax) of imported wine from the previous 48.2% (on CIF price basis) reduced slightly to 46.93%.

To wine producing countries (New Zealand, Chile, and Georgia who have entered Free Trade Agreement (FTA) with China, the new aggregate tax (consumption tax + value-added tax) rate was adjusted from 30% to 28.89%.

Australian wine is in the last (and the 4th) tariff-reduction scheme year (custom duty: 2.8% in 2018), and the new aggregate tax rate is 32.15% (from the former 33.64%) from May until the end of 2018 and will be zero custom duty entering 2019.

#customduty #valueaddedtax #FTA #aggregatetax

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