New VAT may start Jan 1

Plans for a new value-added tax (VAT) for life-related services providers as a replacement for business tax will be unveiled by the end of the year, while the implementation of the trial for the architecture and property industries are expected as early as January 1, 2015, China Business News reported on Tuesday.

The VAT for sectors including catering, travel, hotel and entertainment will likely be set at 6 percent for general taxpayers and 3 percent for small-scale taxpayers. The VAT rate for the architecture and property industries is estimated at 11 percent, according to the report.