China export tax rebate service
Hotline: 86-755-82148419, Email:Info@citilinkia.com
As the Chinese government has updated the Chinese expoart tax related regulations and rules. So the detail information has been changed . The latest one it refer to China’s State Council recently issued its Circular on Matters Relating to Improving the Export Tax Rebate Burden-sharing Mechanism. From 2015 onwards, the full burden of export tax rebates (including VAT rebates on exports and conversion of business tax into VAT rebates on exports) is taken over by the central government’s coffers.
Value-added Tax Rebates
Exported goods are generally subject to zero percent VAT, for these goods, the VAT exemption and rebate policy applies (discussed below). Some goods are exempt from VAT. The difference between zero-rated goods and goods exempt from VAT lies in the refundability of input VAT.
For both zero-rated and exempt goods, no output VAT is payable. For zero-rated goods, input VAT is refundable. For exempt goods, input VAT credits cannot be refunded nor used to deduct output VAT from domestically sold goods, but can be added into the cost of the exported goods. Some examples of VAT exempt goods are:
Goods exported by small-scale VAT taxpayers
Software products
Used equipment
Agricultural products produced by agricultural manufacturers
Duty-free exports such as oil paintings, nuts, and black beans
ATAHK our Observation and Suggestion as follows :
The increase of VAT export refund rates would reduce the production costs of exported-oriented enterprises and strengthen their competitive capability. Enterprises should pay attention to their VAT compliance for the purposes of complying with the latest PRC tax regulations and fulfilling the requirements of PRC tax authorities.
Enterprises should be diligent in presenting sufficient and valid documentation such as export invoices, customs clearance records, foreign exchange receipts and verification / cancellation forms etc. to the PRC tax authorities so as to obtain VAT export refund.
Besides tax compliance, enterprises may wish to evaluate the mix of their domestic sales and export sales, the location of their operations, the flow of their supply chain, and other factors in order to make maximum use of preferential tax treatments.
Enterprises are recommended to consult tax advisors so as to devise a tax efficient operational structure and to perform regular tax health checks.
Contact Us
For further queries, please do not hesitate to contact ATAHK at anytime, anywhere by simply calling China hotline at 86-755-82148419, 86-755-82143512, or emailing to info@citilinkia.com