China VAT Guidance Outlines Requirements, Challenges for Companies

KPMG issued a guide Feb. 26 on China’s value-added tax system, detailing challenges faced by foreign companies and the “myriad exceptions” that may apply in certain situations. The guide also dives into recent VAT developments in China, including the country’s alignment of its VAT system with the “common usage” of VAT and other tax systems globally, KPMG said. The firm also said China plans to move to electronic invoicing as it looks to “accelerate the shift” away from paper-based documents.