The Ministry of Finance of China and the State Taxation Administration of China have jointly announced that sponsors of the Beijing 2022 Winter Olympics and Paralympics Games will be exempted of value added tax for some of their services to the Beijing 2022 Winter Olympics and Paralympics Games, according to a report on Chinanews.com on January 29. 

The services refer to those that are explicitly included in sponsorship contracts related to the Beijing 2022 Winter Olympics and Paralympics Games and test competitions, provided by sponsors and their subsidiaries according to their contracts. These services need to be provided on a free basis. 

The first group of sponsoring companies and affiliated subsidiaries that can benefit from this regulation have been announced by the Ministry of Finance and the State Taxation Administration. 

The regulation applies to services that were executed as early as July 12, 2017 and after. For those services that have been charged VAT, the amount of taxation can be equally deducted from future taxation provided that the relevant VAT invoice issued for such tax can be retrieved. 

Reference: chinanews.com 

Proofread by Raymond Fitzpatrick