May 26 2022

China Exempts VAT for Courier Services till the End of the Year

Announcement by State Taxation Administration (STA)

The Ministry of Finance ("MOF") and the State Taxation Administration ("STA") have jointly released the No.18 Announcement in 2022, clarifying the policy of waiving the value-added tax (VAT) for courier and express delivery services.

Specifically, during the period from May 1 to December 31, 2022, the revenues generated by taxpayers from providing residents with courier and express delivery services for essential goods would be exempted from VAT. The specific scope of the services would be subject to the Explanatory Notes on the Sales of Services, Intangible Assets and Immovable Properties as released under the No. 36 Document of the MOF and the STA. Covered by the category of logistics supporting service of the modern services, the services refer to the business activities of related companies in receiving, sorting out, and delivering letters and parcels within the promised time limit.

Official Notice: http://szs.mof.gov.cn/zhengcefabu/202204/t20220429_3807783.htm