VAT refunds in China
Exporting company in China can obtain compensation from government for paid VAT. But companies, entrepreneurs, individuals not registered in China as economic entities can not apply for VAT refund. Only registration on the territory of China is not enough for obtaining the right to VAT refund: it is necessary to have a status of common taxpayer, have an annual turnover over 800.000 CNY and correspond to 10+ conditions.
Legal VAT refund in China with 4YOU GLOBAL
We will carry out calculations and customs clearance through our legally registered in China company. It is necessary to observe the following conditions:
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An invoice from the Chinese supplier should be addressed to our company, the price of product and amount of the way bill should be pointed out with specification of VAT.
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Export procedures, including customs clearance, are carried out on behalf of our export-import company.
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PECULIARITIES OF REFUND PROCEDURE
Crediting of the VAT amount to our current account shall be executed within 3 months on completing of export operation. Out service fee is not more than 5%. The remaining amount will be transferred to your account within 72 hours.
Rates varies depending on the different product groups: maximum – for sewing machines, generators, electric motors, knitted fabric, minimal – for metallurgical products. The variance is attributable primarily to the decision of the local authorities to stimulate certain groups of exports.
You can legally return up to 85% of the tax, which previously remained at the disposal of Chinese suppliers. But the refundable VAT can not exceed the amount of tax defined in the invoice.