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China Localization

Complying with Value-Added Tax System

Did you know that the final phase of VAT reform will be implemented in China? The compliance of VAT has a substantial impact on foreign companies operating in China or conducting business with Chinese firms.

By leveraging our previous experience in VAT and withholding tax implementations, IT Convergence’s Asia Pacific consulting team has developed an effective conversion package plan which can help your organization adapt to the new VAT system within 4-8 weeks. Contact us to learn more.

Complying with China VAT – ITC’s Solutions

A

Assessment

We analyze your business processes and determine the impacts through financial, legal, commercial and IT assessments:

  • Financial, to understand the effect on your expense, cash flow and profits
  • Legal, to understand if your contracts are structured to adapt to VAT
  • Commercial, to understand the supplier-customer relationship, and how recipients will react to the need to pay VAT
  • IT, to check and update your ERP to cater to the new VAT requirements.
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Implementation

We implement or adjust your ERP system to meet China’s VAT requirements, to issue government tax invoices (called “fapiao”), and to accommodate both international and Chinese-specific accounting and financial reporting standards.

We ensure your system is able to deal with VAT invoice management and controls and interface with the Golden Tax System (GTS), through which all businesses are required to issue all VAT invoices.

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Post-Implementation

We review VAT compliance and test the effectiveness. We also provide training to your finance team and relevant departments, to understand the new VAT requirements.

Discuss the sector-specific changes and solutions in more depth with us

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