Chinese VAT returns
Once VAT registered, businesses are expected to submit periodic returns detailing VAT transactions and the amounts due – or in credit.
Frequency of Chinese VAT returns
Most tax payers submit monthly VAT returns by the 15th of the following month. However, some are required to file more regularly when involved in certain business activities.
Information required on a Chinese VAT return
The Chinese VAT return includes the following requirements:
- Taxable sales listing
- Taxable purchase listing
- VAT incurred on other purchases, including property or intangible assets
- VAT paid in advance
- VAT credits paid
- VAT withheld at source
- Export services and VAT treatment e.g. exemptions, credits and refunds
Many tax payers have to submit two returns (Main Return and the Export VAT Refund Return), plus up to 10 appendices – requiring heavy manual intervention once data has been extracted from source accounting systems. This is further complicated by the compulsory “fapiao” paper invoice regime.
Formats of returns also vary depending on the economic activities of the tax payer.
Other resources
This guide covers the essential steps ecommerce sellers need to take now that the UK has left the EU Customs Union and VAT regime to keep their cross-border sales going, avoid extra tax costs and frustrated customers.
Read the report to learn about key industry trends, emerging issues, and challenges faced by cross-border sellers and shippers.
Manage international tax with cross-border solutions for VAT, HS code classification, trade restrictions, and more.
