Greater Efficiency in Tax Rebate to Boost Export Growth
04 September 2015
The State Administration of Taxation (SAT) has just issued a notice announcing 16 concrete measures in four areas to further improve export value-added tax (VAT) rebate efficiency, promote trade facilitation, and support steady foreign trade growth.
The notice called for efforts to speed up export tax rebate processing and ensure that tax rebate is paid promptly and in full, stating that no one may delay the processing of tax rebate due to insufficient allocation to the export tax rebate plan or any other reasons. It also encouraged active explorations into "Internet + Export VAT Rebate", the use of big data, cloud computing and other new technologies to further broaden the depth and breadth of export tax rebate services.
In tax rebate processing, the sending and replying of letters and the handling of results must be done online using the system of letter-based investigations into the taxation of export goods, and "operation outside the system" is not permitted. Further efforts must be made to improve work efficiency and process export VAT rebate applications accurately and in a timely manner. It is necessary to actively unfold electronic refund, correction, exemption, deduction and transfer of tax revenues in horizontal networking, improve the efficiency of tax refunding out of the state treasury, and shorten the time taken to pay tax rebates. When allocation to export VAT rebate plan is insufficient, it is necessary to promptly report to the tax authority at a higher level and apply for additional allocation. No one may delay the processing of tax rebates due to insufficient allocation to the tax rebate plan or any other reasons.
Under the export tax rebate policy of management by category, the SAT will promptly and accurately implement the policy of zero tax rate or tax exemption for VAT on the export of services, the policy of tourism shopping tax refund, the tax policy for foreign trade comprehensive service enterprises, etc, support small and medium-sized enterprises in effectively opening up international markets, and promptly follow up and resolve new situations and new problems in the management of export VAT rebate (exemption).
On the depth and breadth of tax refund, it is necessary to actively implement the tax policy for cross-border e-commerce enterprises, explore innovative export VAT rebate management mechanisms, and create better conditions for the development of cross-border e-commerce. Facilitation measures such as exempting enterprises from submitting paper customs declaration forms when applying for export VAT rebate (exemption) and extending their time limit for declaration of overdue export VAT rebate (exemption) will be properly implemented to further reduce the tax burden of enterprises and improve the efficiency of processing tax rebates.
On speeding up the processing of export VAT rebates, it is also necessary to strictly guard against and crack down on frauds. Risk elimination should gradually switch from "ex-post checking" to "early warning" and "on-going supervision". Major assessment should be conducted on Category C and Category D export enterprises.
- Mainland China
- Mainland China