China WFOE VAT service
Hotline: 86-755-82143348, Email:amyhuang@citilinkia.com
Value Added Tax (VAT)
Other tax liabilities as applicable to a wholly owned foreign enterprise
(I) Value-added Tax, and Consumption Tax
The below is mainly quoted legalese, but important for your team to consider in great depth:
The WFOE being a general taxpayer is entitled to "Exemption, Credit and Tax Rebate" of taxation, or "Collection First and Refund Later" on the self-managed export, or export on consignment, of its self-produced goods, where:
• "Exemption" from taxation means exemption from the value-added tax on exports and sales of the enterprise;
• "Credit" tax means the enterprise can credit its value-added tax on the purchase of domestic raw materials against its value added tax payable on domestic sales of goods;
• "Tax Rebate" of tax means the refund of the remainder, after crediting, of the value-added tax creditable on purchase in excess of the value-added tax payable on domestic sales, in the current month.
• "Collection First and Refund Later" means the exported goods are subject to taxation at the rate of taxation first and refund of tax later, at the rate of refund placed upon exported goods.
• The Wholly Foreign Owned Enterprise will be exempt from tariff and value-added tax on importation and consumption tax payable on the goods imported by the trade method of processing materials supplied by customers, and processing imported materials, and exempt from the value-added tax on production and consumption tax on the exported goods produced by it.
• The foreign capital investment enterprise categorized as "encouraged" is entitled to a full refund of the value-added tax payable on the qualifying home equipment as falling within the scope of the Exemption Catalogue, and purchased within its aggregate investment.
Contact Us
For further queries, please do not hesitate to contact ATAHK at anytime, anywhere by simply calling China hotline at 86-755-82143348, or emailing to amyhuang@citilinkia.com.