Faster VAT Refund Policy
Recently, the Ministry of Finance ("MOF") and the State Taxation Administration ("STA") have issued the Announcement on Further Accelerating the Application of End-of-Period Excess Input Value-Added Tax Credit Refund Policies (the "Announcement").
The Announcement stipulates that, tax authorities should, according to the Announcement to Further Step up the Application of End-of-Period Excess Input Value-Added Tax Credit Refund Policies, expedite the handling of excess input VAT credit refund for small and micro enterprises, accelerate the progress of tax refund based on applications of taxpayers, and implement the tax refund policies requiring collective refund of existing excess input VAT credits to micro enterprise by April 30, 2022, and to small-sized enterprises by June 30, 2022, respectively. The Announcement also clarifies that the existing VAT credits of medium-sized enterprises will be refunded in advance, and that Item 2 of Article 2 of the Announcement  No. 14 is revised to read: "Eligible medium-sized enterprises in the manufacturing and other industries may, from the tax filing period of May 2022, apply to the competent tax authorities for a one-time refund of the existing VAT credits." The existing VAT credits of medium-sized enterprises will be refunded, based on voluntary applications of taxpayers, by June 30 in a centralized manner.