China Tax Agency Announces Strengthening of Export VAT Refund for Foreign Trade Enterprises, Other Measures

The Chinese State Administration of Taxation July 14 announced measures taken to strengthen the export VAT refund for foreign trade enterprises, and to make other changes. The announcement explains measures: 1) allowing the amount of export VAT refunded to be taken as an input tax deduction; 2) treating the export credit insurance claims that foreign trade enterprises obtain as foreign exchange receipts and permitting a tax refund; 3) expanding the scope of the departure tax refund regime; 4) strengthening inter-departmental data sharing; 5) simplifying the documentation required for tax refunds and reducing the average refund time to six working days ...