8 Oct 2019
Advanced Manufactures Granted End-of-Year VAT Credit Refund Incentive
As of 1 June this year, qualified advanced manufacturing VAT taxpayers have been entitled to apply to their local tax authority for a refund of the end-of-period incremental VAT credit relating to the filing period commencing 1 July 2019 and for subsequent filing periods. The move has been seen as a bid to boost the development of China’s advanced manufacturing industries.
For the purposes of this particular incentive measure, “advanced manufacturing VAT taxpayer” refers to any VAT taxpayer producing / offering for sale non-metal mineral products, general equipment, special equipment, computers, communications and other electronic equipment designated under the terms of the Industry Classification for the National Economy and with a sales value accounting for more than 50% of total sales. The term “VAT credit”, meanwhile, refers to any end-of-period excess VAT paid after 31 March 2019.
Full details of the initiative can be found in the Announcement on Clarifying the Policies on the Refund of End-of-Year Excess Input Value-Added Tax Credits in Some Advanced Manufacturing Industries (No. 84 ), as recently issued by the Ministry of Finance and the State Taxation Administration.
Source: State Taxation Administration