I’ve heard that VAT refunds in China are no longer given on almost 3500 types of goods (the process started at 2007). Thus, less and less firms are refunding VAT. Is it true?

It is true that the VAT rates and applicable product classifications are being adjusted. But the products in question are a small fraction of the total exports. So this current round of adjustments doesn’t apply to everybody. Plus, these particular industries targeted by the government for VAT rebate adjustments tend to be less desirable industries (low technology, high pollution) that the government wants to discourage Chinese manufacturers from engaging in.

Let us know your product descriptions and HS codes and I’ll have my logistics manager spend a few minutes to look up the rates for you.

If you want to stay up to date, know that the following websites and their e-magazines often run articles on the topic of China VAT. www.SmartChinaSourcing.com and www.ChinaSourcingInfo.org

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