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FAQs of Value-added Tax in China

Can Foreign Investment Enterprise , being small-scale taxpayer , purchase home equipment with VAT refund?

Update Date:2022-7-21 18:36:22     Source:www.3737580.com     Views:985

China Value-added Tax Service

Hotline: 86-755-82143348/86-13823131503  Email: anitayao@citilinkia.com

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Q:Can Foreign Investment Enterprise , being small-scale taxpayer , purchase home equipment with VAT refund?
A: Yes. Home equipment purchased by non-VAT payer, small-scale taxpayer as well as Foreign Investment Enterprise set up in bonded area, in compliance with relevant requirements (GSF (1999) No. 171), can process refund of tax.


Q:Can this company , being retail enterprise with annual turnover about RMB2.1 million , refuse application for the qualification of general taxpayer?
A: No. According to requirements, enterprise with annual turnover above RMB0.8 million will apply to tax bureau to become general taxpayer.

 

Q:Can plain invoice credit Input VAT?
A: No. VAT special invoice recognized by the Tax Law can only credit Output VAT, but the amount of plain invoice can be included in purchase cost.


Q:Can exported goods of small-scale taxpayer be entitled to refund of tax?
A: According to prevailing policies concerning tax rebates (exemptions) for exported goods, the goods exported by small-scale taxpayer on their own or on consignment shall be free of VAT, consumption tax but without refund.

 

Q:How can I apply for the qualification of general taxpayer who can issue VAT special invoice?
A: Application for general taxpayer VAT special invoice shall fulfill the following conditions:
Industrial enterprise with annual taxable sales value no less than RMB0.5 million
Commercial enterprise with annual taxable sales value no less than RMB0.8 million
Enterprise with a sound accounting and auditing system and purchased anti-counterfeiting tax control equipment


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