Policy basis:

Appendix 4 of Caishui [213] No.16 "Provisions on the Application of Zero VAT Rate and Tax Exemption Policy to Taxable Services"

VII. The following taxable services provided by domestic units and individuals are exempt from VAT. Except that the Ministry of Finance and State Taxation Administration of The People's Republic of China stipulate that zero VAT rate is applicable:

(9) The following taxable services are provided to overseas units:

1. Technology transfer services, technical consulting services, contract energy management services, software services, circuit design and testing services, information system services, business process management services, trademark copyright transfer services, intellectual property services, logistics auxiliary services (except warehousing services and receiving and dispatching services) and certification. However, it does not include: contract energy management services for the subject matter of the contract in China, certification services, authentication services and consulting services for domestic goods or real estate.

2. Advertising services where advertisements are placed overseas.