Adjustment of VAT rates as of May 1, 2018
According to circular Caishui  No. 32, issued by the Ministry of Finance on April 4, 2018, the following new rules will apply effective May 1, 2018:
- For the manufacturing and trading industry and other sectors that are subject to 17%, the VAT rate will be lowered to 16%.
- For transportation, construction and basic telecommunication services and other sectors that are subject to 11%, the VAT rate will be lowered to 10%.
- The deduction rate for purchased agricultural products is lowered from 11% to 10%. If the agricultural products are purchased for production, sale or consignment process of the goods that are subject to 16% VAT, the deduction rate will be 12%.
- For products and services, for which the export VAT refund rate was 17% in the past, the export VAT refund rate will be adjusted to 16%.
- For products and services, for which the export VAT refund rate was 11% in the past, the export VAT refund rate will be adjusted to 10%.
- For exported services and products purchased by the exporter before May 1, 2018, the VAT refund rates valid before the Adjustment will still be applied until July 31, 2018.