VAT refund on export from China

UGL Corporation is ready to offer all business owners in PRC VAT refund services in China. Any firm engaged in foreign economic activity can use such service. The service is provided by competent specialists, who since 2005 have been successfully practicing in such matters.

Why use the VAT refund service?

Often our customers do not realize that it is possible to get a VAT refund in China when exporting, but in the meantime it will save you a large sum. According to the Chinese legislation, local and foreign companies that have officially registered their activities and received an export permit, are entitled to a VAT refund. Companies that have permission to export goods from China have the right to apply to the local tax administration for a VAT refund after exporting the goods.

VAT refund is one of the practices of the Chinese state. It is a preferential event within the tax system to stimulate the export of products. The amount to be refunded is calculated according to special formulas, taking into account incoming and outgoing taxes of the company, which are collected in the course of production of this or that product. As you can see, receiving a VAT refund is not only beneficial, but also quite official practice in China.

Features of Chinese VAT:

• VAT in PRC – the rate directly depends on the type of exported products and is determined in accordance with the unified electronic database system of the tax service;
• High rates of VAT refunds are observed in industries that are most interesting for the Chinese state and promising for the economy, so the rate of return reaches 17%. Thus, China stimulates this or that industry, demonstrating its interest in it;
• VAT refund is claimed only by those companies which are officially registered in the territory of the People’s Republic of China and are engaged in the export of goods and have the status of “ordinary taxpayer”;
• VAT refund period varies from 1.5 to 3 months, depending on the place of company registration.

China’s legislation has many nuances, so even many local businesses cannot always properly prepare the necessary documentation for the VAT refund, what to say about foreign companies, where specialists work without knowledge of the local language and legislation of the country. That is why our experts are not just in theory ready to share knowledge, but also to prepare a full package of documents and correctly make the necessary calculations, to consult with the tax authorities on each specific case for the prompt return of taxes. Submission of documents for refund requires precision and accuracy, understanding of all the nuances and tax subtleties, so it is important to turn to professionals – specialists of UGL Corporation Ltd., which have extensive practical base on this topic.

Remember that without taking into account the specifics, you can irrationally use the VAT refund, which will negatively affect the optimization of the tax scheme for your company. UGL company will perform all necessary actions aimed at prompt VAT refund at the highest possible rate for the client’s company. Contact our managers for VAT refund, we will help you.