Shenzhen Tax Refund Service
Shenzhen hotline: 86-755-82147392 Email：info@citilinkia.com
A tax refund or tax rebate is a refund on taxes when the tax liability is less than the taxes paid. In China, the foreigner can apply for tax refund for all the taxed goods bought in China, including imported goods. For the enterprises in China, the exporters can apply to export tax refund if the goods qualify for the requirements. The Tax System in China has undergone tremendous changes in 2012. The business owners should always check out for the latest development in those laws and regulations and consult experienced professionals before deciding on their investment plans.
One. The overview of China tax refund
One of the most significant changes under the Shanghai VAT Pilot arrangement, which came into effect on 1January 2012, is the expansion of the export VAT refund regime to cover certain transactions relating to certain services. The Ministry of Finance (MOF) and State Administration of Taxation (SAT) of the People's Republic of China have issued a series of circulars bringing significant changes to the export VAT refund regime.
1. Export of qualified goods and services, on which export enterprises fail to apply for the export tax refund or fail to provide relevant outstanding documents within the prescribed time limit to the tax authorities after the above application.
2. The deadline for the application for the export tax refund is extended to the period from the following month to April of the following year when such export occurred.
3. The export enterprises, which are eligible for the export VAT exemption, may now choose to renounce such exemption. In this case, such export sales would be deemed as domestic sales and VAT would be payable. No change can be made within 36 months once the export enterprises renounce the tax exemption.
4. Import VAT Payment Certificates are included in the documentation requirements for the application for the export tax refund. If the goods imported by a trading company can be eligible for the export VAT refund with the support of the Imported VAT Payment Certificates.
Two. The Requirements of China tax refund
1. The goods are subject to VAT or consumption taxes under the Chinese tax rules;
2. The nature of the export transaction must be treated as sales, not the disposal of fixed assets, in the books of accounts for the exporter;
3. The goods have physically left the country except for that shipped to export processing zones;
4. The exporter has to produce evidence showing that the foreign exchange verification procedure governing the export collections has been completed.
Three. The Required Documents of China tax refund
The taxpayer should produce the following documentary proofs to the tax bureau in order to get the export refunds:
1. Special Invoice for export goods;
2. Customs declaration for export goods;
3. Foreign exchange verification notes for export collections;
4. VAT invoice for purchase of export goods;
5. Paid tax payment demand note;
6. VAT declaration forms.
Four. The methods of China tax refund
1. The tax-exempt method
2. The pay-first-and-refund-later method
3. The exempt-offset-refund method.
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