China alert - Issue 6, April 2012 The Value Added Tax (VAT) pilot program is currently operational in Shanghai, and is expected to be expanded to several other provinces in mainland China during the course of 2012/13. The VAT pilot program applies to the supply of transportation and other modern services industries. The rules for the pilot program provide that the export of certain types of services may be treated as zero-rated or exempt for VAT purposes. However, in practice, businesses have been unable to access these concessions given the absence of application procedures and documentation requirements being promulgated. In a joint announcement issued by the Ministry of Finance (MoF) and the State Administration of Taxation (SAT), the Chinese government has now set out the application procedures and documentation requirements for claiming zero-rated VAT concessions for exported services under the VAT pilot program.