China Eliminates 6% VAT

January 17, 2014
By Michelle Kelley

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Last year we informed you of a new 6% value added tax (VAT) imposed by the Chinese government on international transportation charges paid in China.

Freight charges are now officially exempt from this tax, according to a news release posted on the Federal Maritime Commission’s (FMC) website.

The FMC reports that this exemption, which went into effect on January 1, is retroactive to August 1 of last year, when the original VAT went into force.

Read the FMC’s news release

Read Mohawk’s article announcing the new VAT (posted July 29, 2013)