13.10.25China's Logistics Organization Calls on VAT Exemption on Forwarding Services

The China Federation of Logistics & Purchasing (CFLP), China's social organization of logistics industry approved by the State Council, called on the State Administration of Taxation to exempt international freight forwarding services from Value-Added Tax (VAT) as the industry is suffering losses due to increases in port charges, cargo handling fees, cargo inspection charges, and container freight rates.

CFLP also said the imposition of VAT on international freight forwarding services is against the government policy to boost competitiveness of the nation's international logistics and trade.

The 6% VAT is collected from August 1, 2013 on all air and ocean freight charges to be paid in China according to the ''Tax Policy of Value Added Tax (VAT) Pilot Program on Transportation & Modern Services Sector'' jointly issued by the Ministry of Finance (MOF) and the State Administration of Taxation.