China"s value-added taxes (VAT) con-tribute a large percentage to China"s annual tax revenue and account for a significant proportion of tax liabilities for many Chinese enterprises. China started to implement VAT in 1984 on 24 specified taxabIe items and on December 13, 1993, the State Council pro-mulgated The Provisional Regulation of the People"s Republic of China on Value-Added Tax with the intent of "unifying taxation management, equalizing the tax burden, simplifying the tax system, and guaranteeing financial revenue." This regulation, which codified China"s VAT system, has been in use ever sincc.
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