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VAT Refund: Implementation of "Assessment Before Refund" - 国家税务总局关于增值税即征即退实施先评估后退税有关问题的通知
December 11, 2009
Released on August 13, 2009, and effective on September 1, 2009
The State Administration of Taxation (SAT) on August 13, 2009, released a circular to strengthen the administration of VAT refund upon collection. It provides that the enterprises applying for tax refund, which are applicable to VAT refund upon collection policy, can obtain the refund only if they pass the assessment conducted by the competent tax bureau. The Circular states that the assessment depends on the result of calculation regarding Rate of Change for sales revenue (“RoC for Sales Revenue”) and for VAT Tax Burden Rate (“VAT TBR”). If either RoC for Sales Revenue or VAT TBR is abnormal, the competent tax bureau shall suspend the refund and conduct investigation within twenty working days after the suspension.