Announcement of the Shanghai Municipality on Issues concerning the Administration of Value-Added Tax Exemption for Cross-Border Taxable Activities in the Program of Collection of Value-Added Tax in Lieu of Business Tax
Announcement of the Shanghai Municipality on Issues concerning the Administration of Value-Added Tax Exemption for Cross-Border Taxable Activities in the Program of Collection of Value-Added Tax in Lieu of Business Tax
Announcement of the Shanghai Municipality on Issues concerning the Administration of Value-Added Tax Exemption for Cross-Border Taxable Activities in the Program of Collection of Value-Added Tax in Lieu of Business Tax
Announcement of the Shanghai Municipal Tax Service, State Taxation Administration [2016] No.10
June 30, 2016
Pursuant to the provisions of the Announcement of the State Taxation Administration on Promulgating the Administrative Measures for Exemption of Value-Added Tax on Cross-Border Taxable Activities in the Program of Collection of Value-Added Tax in Lieu of Business Tax (for Trial Implementation) (Announcement of the State Taxation Administration [2016] No.29) ("No. 29 Announcement"), with a view to regulating the tax administration of VAT exemption for cross-border taxable activities in the program of collection of VAT in lieu of business tax (hereinafter referred to as "BT to VAT reform") in this municipality, thereby facilitating taxpayers to go through the formalities of tax exemption filing for cross-border taxable activities, the issues concerning the administration of value-added tax exemption for cross-border taxable activities ("Cross-border Activities") in the program of collection of value-added tax in lieu of business tax for Shanghai municipality are hereby announced as follows:
1. Application materials for tax exemption filing
A taxpayer shall submit the following application materials when applying for tax exemption filing for cross-border services:
(1) Filing Form for Tax Exemption of Cross-border Taxable Activities (Annex 1);
(2) The original and copy of the contract for cross-border sales of services or intangible assets as stipulated in Article 5 of Announcement No.29.
Where a taxpayer conducts cross-border taxable activities, it shall submit signed written contracts for cross-border sales of services or intangible assets, except for the circumstances specified in Items (9) and (20) of Article 2 of Announcement No.29. The contract format shall be in compliance with the relevant requirements of the Contract Law of the People's Republic of China. A proforma contract concluded in the form of an agreement, a letter of engagement, an order, a confirmation, a letter of instruction, etc., may be regarded as a contract, provided that it contains necessary contract information such as the subject matter of cross-border taxable activity, the name and location of the parties, the place where the cross-border taxable activity occurs, price or pricing standard, date of payment, approach of payment, and liability for breach of contract agreed upon by both parties.
For a framework contract without a price or valuation standard or payment date, a taxpayer shall file it with the competent tax authorities within the tax declaration period determined as per the price or valuation standard or within the filing period set forth in Item (1) of Section 2 of this Announcement. For an order attached to the performance of the framework contract, it can be used as supplementary contract information to determine the price, pricing standard and payment date. If the number of orders is large, the approach of monthly collection and list-based filing may be adopted.
The original and copy (with official seal) of a contract for cross-border sales of service or intangible assets shall be submitted at the same time, and the competent tax authorities shall retain the copy after verifying and reviewing the original thereof. If the original of the cross-border service contract is written in a foreign language, the Chinese translation shall be submitted, containing the words "the translation is consistent with the original", and bearing the signature of the legal representative (person in charge) or common seal of the entity.
For a large number of contracts of the same type with such basically identical information as the subject matter of taxable activities and sales approaches, the original and copy of only one contract may be submitted for filing, and the rest shall be replaced by a summary list, and the relevant materials shall be retained by the taxpayer for future reference.
(3) Where a cross-border service is provided at the place of service outside the territory of China, that is, the cross-border service in Items (1) through (8) and (16) of Article 2 of Announcement No.29, generally, a taxpayer shall submit the materials listed in Item 1 below.
......
Announcement of the Shanghai Municipal Tax Service, State Taxation Administration [2016] No.10
June 30, 2016
Pursuant to the provisions of the Announcement of the State Taxation Administration on Promulgating the Administrative Measures for Exemption of Value-Added Tax on Cross-Border Taxable Activities in the Program of Collection of Value-Added Tax in Lieu of Business Tax (for Trial Implementation) (Announcement of the State Taxation Administration [2016] No.29) ("No. 29 Announcement"), with a view to regulating the tax administration of VAT exemption for cross-border taxable activities in the program of collection of VAT in lieu of business tax (hereinafter referred to as "BT to VAT reform") in this municipality, thereby facilitating taxpayers to go through the formalities of tax exemption filing for cross-border taxable activities, the issues concerning the administration of value-added tax exemption for cross-border taxable activities ("Cross-border Activities") in the program of collection of value-added tax in lieu of business tax for Shanghai municipality are hereby announced as follows:
1. Application materials for tax exemption filing
A taxpayer shall submit the following application materials when applying for tax exemption filing for cross-border services:
(1) Filing Form for Tax Exemption of Cross-border Taxable Activities (Annex 1);
(2) The original and copy of the contract for cross-border sales of services or intangible assets as stipulated in Article 5 of Announcement No.29.
Where a taxpayer conducts cross-border taxable activities, it shall submit signed written contracts for cross-border sales of services or intangible assets, except for the circumstances specified in Items (9) and (20) of Article 2 of Announcement No.29. The contract format shall be in compliance with the relevant requirements of the Contract Law of the People's Republic of China. A proforma contract concluded in the form of an agreement, a letter of engagement, an order, a confirmation, a letter of instruction, etc., may be regarded as a contract, provided that it contains necessary contract information such as the subject matter of cross-border taxable activity, the name and location of the parties, the place where the cross-border taxable activity occurs, price or pricing standard, date of payment, approach of payment, and liability for breach of contract agreed upon by both parties.
For a framework contract without a price or valuation standard or payment date, a taxpayer shall file it with the competent tax authorities within the tax declaration period determined as per the price or valuation standard or within the filing period set forth in Item (1) of Section 2 of this Announcement. For an order attached to the performance of the framework contract, it can be used as supplementary contract information to determine the price, pricing standard and payment date. If the number of orders is large, the approach of monthly collection and list-based filing may be adopted.
The original and copy (with official seal) of a contract for cross-border sales of service or intangible assets shall be submitted at the same time, and the competent tax authorities shall retain the copy after verifying and reviewing the original thereof. If the original of the cross-border service contract is written in a foreign language, the Chinese translation shall be submitted, containing the words "the translation is consistent with the original", and bearing the signature of the legal representative (person in charge) or common seal of the entity.
For a large number of contracts of the same type with such basically identical information as the subject matter of taxable activities and sales approaches, the original and copy of only one contract may be submitted for filing, and the rest shall be replaced by a summary list, and the relevant materials shall be retained by the taxpayer for future reference.
(3) Where a cross-border service is provided at the place of service outside the territory of China, that is, the cross-border service in Items (1) through (8) and (16) of Article 2 of Announcement No.29, generally, a taxpayer shall submit the materials listed in Item 1 below.
......