VAT refund

Stimulating various branches of the Chinese industry is an urgent task for the local government. For this purpose, a VAT refund is organized according to the law if the company exports from China.

There is also a whole list of stores that allow you to return VAT for a purchase, which is done in China by a foreigner while in the country as a tourist.

VAT refund to legal entities

How much will be returned is determined on a case-by-case basis by checking the classification of the goods.

And, in fact, the return is handled by the tax authority. At the same time, the process takes no less than two and a half to six months.

However, this restriction can be circumvented by using the services of legal entities that provide support in this area.

It works like this

The transaction with the supplier is carried out with the help of an intermediary company. She receives the full amount of the upcoming transaction within the framework of the concluded contract.
Next, it takes care that the money gets to the supplier, and expects to receive a VAT invoice from customs when the goods are cleared.

As soon as the VAT invoice is received, the VAT amount is returned to the buyer minus the commission. You can find such a commission on the market, for example, only 3% of the transaction amount. Despite the fact that the refund amount reaches 13%.

VAT refund for tourists

The specific percentage of the return depends on which group the product belongs to. In particular, if you want, for example, to buy an iPhone, then it can cost you $ 1,098 in tax-free Hong Kong, and $ 1,237 in China.

If the 11% VAT is returned to you, then on the mainland you can pay for the same iPhone already 1101 dollars.
As you can see, the benefit is on the face!

Important condition! No more than 180 days should elapse between entry and exit. Also, from the moment of purchase, which should not be less than 500 yuan (71 dollars), should not pass more than 90 days.

To return VAT for purchase under the Tax-Free program, you need to buy the product in one of the stores that participate in these events. You can find a list of these in the tax office of the city in which you are located.

In the store in Chinese, you need to say that you want to issue a VAT refund.
To do this, you need to open an invoice and fill out an application for a VAT refund.
This is done with the help of the seller. It can take 5 minutes or two days. It all depends on the experience of the seller.

After that, the return itself is carried out at the airport. You need to drive up and ask about where you can return the VAT.

Note that the counters at the pick-up points are not located at all airports. Therefore, it is worth taking care in advance of where the purchase will be completed.

Also, please note that these racks belong to organizations, but, of course, not to those from whom you made your purchase.

Therefore, you will definitely be charged a commission. It will be one and a half percent. This means that of the 11 percent that was previously mentioned, 9.5 percent will remain.

As I said, the return rate for different products is different. And you can only find out its final value when you receive it.

VAT refunds are a great example of how you can benefit from working with Chinese suppliers.

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