Article 4 of the Announcement of State Taxation Administration of The People's Republic of China on Further Clarifying the Issues Concerning the Collection and Management of VAT (State Taxation Administration of The People's Republic of China Announcement No.20 171) stipulates that ordinary taxpayers can provide installation services while selling elevators, and their installation services can be taxed according to the simple taxation method for the project provided by Party A.. That is to say, whether Party A purchases elevators by itself and gives them to elevator enterprises (general taxpayers, the same below) for installation, or purchases elevators from elevator enterprises and installs them by them, the installation services provided by elevator enterprises can be taxed according to the simple taxation method provided by Party A..

This clause shall be implemented as of May/July/20 17, and the matters that have not been handled before shall be implemented in accordance with this provision.