Notice of VAT Use by Foreign Trade Enterprises Updated

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May 7 – The State Administration of Taxation issued a notice on April 23 regarding the export tax rebates for foreign trade enterprises that have lost their VAT invoice offset page.

Guoshuihan [2010] No. 162 stipulates that foreign trade enterprises without VAT invoices and VAT rebate deduction invoices should gather the original VAT accounting record, the certificate from the local sellers’ tax authority, and approval from the buyers’ tax authority before applying for an export tax rebate.

The circular states that when a foreign trade enterprise misplaces their invoice copy and offset copy of an issued special invoice, “the foreign trade enterprise may, upon examination and approval by the tax authorities in the buyer’s location, use a photocopy of the corresponding special invoice accounting copy provided by the seller and a certificate issued by the tax authorities in the seller’s location to declare proof of export rebates to tax authorities.”

After confirmation and matching up VAT invoice certifications, foreign trade enterprises without a VAT rebate deduction invoice can use a copy of the VAT invoice when applying for export tax rebates with the local tax authority.

Export rebates can only be processed in accordance with current tax rebate provisions on the condition that the comparison of special VAT invoices shows no errors.