Umsatzsteuer in Asien

The document discusses the complexities and changes in various Asian countries' value-added tax (VAT) systems, particularly focusing on China, India, and Vietnam. The VAT system in these regions can be challenging for businesses due to varying rates, which range from 0 to 17%, and the recent shift towards a consumption-based system from a production-based one.

Key points include:

• Registration: Registering as a general VAT payer is crucial for efficient management of VAT-paying businesses in China. This status allows businesses to issue printed VAT invoices, essential for managing VAT transactions. Companies must meet specific requirements, such as having fixed premises, complying with accounting regulations, and sometimes additional local criteria like office size or capital registered.

• Qualification: New, foreign-invested companies generally find it relatively easy to qualify for the general VAT payer status. However, once a company's annual turnover reaches certain thresholds (500,000 RMB for goods producers and steered service providers, and 800,000 RMB for large and retail businesses), they must apply for this status. For businesses under pilot VAT projects, the threshold is higher at 5 million RMB.

• Issuing Official Invoices: Qualifying as a general VAT payer involves completing a process that typically lasts between 2 to 6 months. This includes a visit by a tax official, acquiring a printer and blank invoices, and attending a course on issuing official VAT invoices. These invoices are more than just receipts; they are used by the government to verify taxes and are purchased directly from tax authorities.

• Overcoming Delays: Long waiting periods for obtaining VAT payer status can cause issues for businesses, especially large retailers who might have to wait up to 3 months. Solutions include requesting invoice issuance date extensions from customers, purchasing official invoices from tax authorities for limited quantities, or dealing with third parties or importing/exporting goods through free trade zones.

• Invoice Quotas: Companies may face challenges regarding the number and value of their assigned VAT invoices after qualifying as general VAT payers. For example, a Beijing-based general VAT payer might start with a quota of 25 pieces, each valued at 10,000 RMB. Businesses needing higher amounts can request value or quantity increases.

This overview highlights the importance of understanding the VAT systems in these Asian countries for businesses looking to operate there, emphasizing the need for proper registration, compliance, and potentially addressing common issues like long waiting times and invoice quotas.