After the Import Duty and VAT is paid during importation, when can I get a VAT rebate?

I would like to import to China Espresso Making machines and Coffee from Italy. My main question that I would like to ask of you is that when the Import Duty and the VAT is paid during the importation process at what point if any can I get a VAT Rebate? I have been informed that I can get a VAT Rebate when the product is sold in the Chinese market, Is that correct?


You are correct that import duty and VAT is paid upon importation into China. I am afraid that whoever told you that you can get a VAT rebate when the products are sold in China did not give accurate advice.  But China is a big place and the laws change, so perhaps the person that gave you that advice knows something that I don’t.  The following is my understanding, but if your advisor knows different, please let me know as I too would like to stay up to date.

As I understand it, the VAT rebate is applied for when good leave China.   For example, if you were a China-based legally registered entity (fully licensed to do trading and process VAT and based in China) and imported coffee and machines into China from your supplier in Italy, then sold the items to buyers outside of China, then MAYBE there could be some VAT rebate.  But in the situation you describe above where you are selling to the China market for end use in China, there is no VAT rebate that I am aware of.

Wishing you smooth China business!


Best Regards,

Mike Bellamy

China Operations Director, PassageMaker Sourcing Solutions

Chairman of the Advisory Board, China Sourcing Information Center

Author, The Essential Reference Guide to China Sourcing


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