VAT REFUND GUIDELINES OF GUANGZHOU FOR FOREIGN TRAVELERS

2016-06-01

空中之家 2016年9期

On July 1st, 2016, Guangzhou government began to implement the VAT refund Policy for foreign travelers. The new policy is being piloted fi rst at Guangzhou Baiyun International Airport Port and Nansha Port.

I. VAT Refund Policy

The VAT Refund Policy allows a foreign traveler, when leaving China via a departure port, to claim the refund of the Value Added Tax (VAT) paid on the goods purchased from a Tax Free Store (TFS).

Foreign travelers include the expatriates or compatriots from Hong Kong, Macao and Taiwan who stay in the Chinese mainland for no more than 183 consecutive days.

Valid IDs include passport, Mainland Travel Permit (MTP) for Hong Kong and Macau Residents, MTP for Taiwan residents and etc.

II. VAT Refund Goods

VAT Refund Goods means the personal goods purchased by a foreign traveler from a TFS that are eligible for VAT refund. The following goods are not eligible for the VAT refund.

(I) The goods that are prohibited and restricted from entering or exiting the People's Republic of China (the PRC) as specified in List of Prohibited or Restricted Items of the PRC;

(II) The goods sold in TFS that are eligible for VAT exemption policy;

(III) Other goods as specified by the Ministry of Finance, the General Administration of Customs and the State Administration of Taxation.

III. Conditions of VAT Refund

(I) The VAT refund goods purchased by one foreign traveler from one TFS within one day is worth over RMB 500 Yuan;

(II) The goods have not been used or consumed;

(III) The goods are taken out of the PRC within 90 calendar days from the date of purchase (date of VAT invoice);

(IV) The goods are taken out of the PRC in the foreign traveler's hand baggage or check-in baggage.

IV. VAT Refund Calculation

VAT refund amount = amount of sales invoice of VAT refund goods (including VAT) X VAT refund rate (11%) Service charge of VAT refund agency = amount of the sales invoice of VAT refund goods (including VAT) X service charge rate (2%) Actual VAT refund amount = VAT refund -service charge of VAT refund agency

V. VAT Refund Procedure

(I) Purchase VAT refund goods While purchasing VAT refund goods from TFS, the foreign traveler should ask for VAT Refund Application Form of Foreign Traveler (hereinafter referred to as VAT Refund Form) from the TFS with valid ID and General VAT Invoice of the purchased goods. Procedure: purchase goods— wish to claim VAT refund — ask for VAT Refund Form

(II) Custom check and verification At the departure port for leaving China, the foreign traveler should declare the VAT refund goods to the custom with VAT Refund Form and the sales invoice, and the Customs will check the goods and stamp the VAT Refund Form. Procedure: declare VAT refund goods with relevant documents to the Customs— Customs check the goods — Customs stamp on VAT Refund Form.

(III) VAT refund via an agency The VAT refund is processed via a VAT refund agency located within the secured area of the departure port where foreign travelers process the departure formalities. The foreign traveler may claim VAT refund from the agency with valid ID, Customsstamped VAT Refund Form and sales invoice of the VAT refund goods. After checking the relevant information, the VAT refund agency will advance the VAT refund to the foreign traveler and deduct the service charge from the VAT refund. Procedure: claim VAT refund from the agency with relevant documents — agency checks the documents — collect VAT refund in cash or handle formalities for collecting VAT refund and sign the Receipt of VAT Refund.

VI. VAT Refund Currency

VAT is refunded in RMB in cash or via bank transfer.

Refund less than RMB 10,000 Yuan can be paid in a way desirable by the foreign traveler, while refund more than RMB 10,000 Yuan will be paid via bank transfer.

VII. Tax Free Store (TFS)

For the TFS list, please visit: Guangdong Provincial Office, SAT (http:// www.gd-n-tax.gov.cn)

VIII. Customs Check Points

Guangzhou Baiyun International Airport Nansha Port Passenger Terminal

IX. VAT Refund Agency

Agricultural Bank of China, Guangdong Branch

X. For further information, please contact

(I) Guangzhou Municipal Office, State Administration of Taxation, service hotline: 12366-1

(II) Guangzhou Municipal Office, State Administration of Taxation Guangzhou Municipal Office, State Administration of Taxation, wechat:

(III) Visit the following website: Guangzhou Municipal Office, State Administration of Taxation (http:// www.12366.gov.cn) Bureau of Finance of Guangzhou Municipality (http://www.gzfinance.gov.cn) Guangzhou Customs (http://guangzhou. Customs.gov.cn) Guangzhou Municipal Commission of Commerce (http://www.gzcoc.gov.cn) Tourism Administration of Guangzhou Municipality（http://www.gzly.gov.cn）

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