International Trade News
August 1 2013 Begins the Nationwide VAT Tax In China
It is typical of a socialist country that when things begin to slow, they push the pedal down for more Taxes. It is true of the China government once again as they roll out a sweet 6% Value Added Tax or VAT tax hike replacing the formerly known “Business Tax” across the nation. Affected segments of their sector include “modern services (not sure what that it is) and the transportation industry.
UPS noted it will be following the below guidelines outlined by UPS:
It just goes to show that you need to be really careful about what you are doing and know what you are doing before importing or exporting in and out from any country…especially China where things are complex.
TRADING COMPANIES BEWARE!!! This is the real folly of why you have to have a company you trust. Do you realize that most of the companies contacting you from the web are not the actual factory…they are trading companies and they usually DO NOT HAVE AN EXPORT LICENSE! What a huge shocker it will be when you tell your boss you have a killer price from a new PCB Supplier in China for a shipment of price sensitive Printed Circuit boards only to realize paid 6% more than you originally should have because the product originally quoted was missing the VAT Tax and the company you bought it from is responsible for that VAT tax or other taxes and didn’t pay them…Yes there are dubious fabricators out there that don’t pay their taxes and sneak product across the border. We know, because we had to FIRE a factory what it happened to us!
Don’t let these kinds of potential issues happen to you. It is only a matter of time before they will if you play Russian roulette with your supply chain and decide to experiment with an unknown supplier – it goes way beyond quality and price! Oh be wise!
Extra Special notice: There are new rules for commercial invoices for dealing with import and export in and out of Venezuela. Again – do you know what you are doing internationally? You need the professionals to keep track of these details so you don’t experience delays!
Source: UPS de VenezuelaJames Brown PCB Solutions V.P. Sales & Marketing [email protected]