Revised PRC <Foreign Trading Law> ( "FTL")
has been executed since July, July 1, 2004. As a continuum of
the well implementation of FTL, Circular No. 955 (2004) (hereinafter
referred to as ¡°Circular¡±) was issued to deal with the following
related problems of the export value-added tax (¡°VAT¡±) refund
and exemption measures to better accommodate the revised FTL:
Please note that there is no requirement for Traders who
have already obtained an export VAT refund registration certificate
before the issuance of this Circular to go through the above
application procedures. However, Trades who are operating
outside of its approved business scope of activities are required
to apply for the export VAT refund or exemption confirmation
by applying the above procedures.
When a change occurred in the structure of the Traders, such
as dissolution or merger or any other changes; the Traders
must proceed to the local tax authorities to apply for modification
on its export VAT refund and exemption assessment method within
30 days from the date when the modification in the file registration
is made.
Accordingly, prior regulations regarding the registration
for export VAT refund promulgated in Circular No. 031 (1994)
<Export VAT Refund and Exemption Measures> are deemed
to be ineffective upon the issuance of this Circular.
2. In order to enjoy export VAT refund and
exemptions, Traders should only use the name registered in
the export VAT refund and exemption registration file to conduct
export transactions.
3. For manufacturing Traders who are permitted
to export its self-manufactured products, their export VAT
refund and exemption method should be applied in accordance
to current export tax regulations for manufacturing company,
which is export VAT ¡°exemption, offset, and refund¡± method.
For non-manufacturing Traders, their export VAT refund and
exemption method should be applied in accordance to current
export VAT refund and exemption measures for foreign trading
entities.
For Traders who are deemed small-sized VAT taxpayers, their
export VAT refund and exemption method should be applied in
accordance to current export tax regulations for small-sized
taxpayers, that is to be exempted from both VAT and consumption
tax.
4. Foreign trading entities that purchase
export goods directly from intermediary trading entities should
apply their export VAT refund and exemption method in accordance
to current export VAT application procedures.
For manufacturing entities that were selected to be experimental
targets for export VAT tax refund system, their export VAT
refund and exemption method should be applied in accordance
to current export tax regulations for manufacturing company,
which is export VAT ¡°exemption, offset, and refund¡± method.
For manufacturing entities that were not selected to be experimental
targets for export VAT tax refund system, its permitted scope
of export VAT refunds should be made according to the regulations
promulgated in Circular No. 1170 (2002) <Export VAT refund
on export goods deemed to be self-manufactured>.
5. This Circular is effective from July
1 st , 2004, with the exception of Article 4 of this Circular,
which is effective June 1 st , 2004. The ¡°goods exported date¡±
marked on the export goods customs declaration form is deemed
to be the effective date.
