It was interesting to read your article: http://www.smartchinasourcing.com/negotiating/china-tax-understanding-the-china-vat-rebate.html

Thank you for volunteering to clarify on VAT impact. Our company is an Electrical Engineering manufacturer of Switchgears in India. We are importing Porcelain Insulators and Aluminium Casting duly machined for use in Switchgear Industries under HS code 8538900000 – Copper Tungsten contacts… Can you please inform me as to what is the VAT refund that the Chinese suppliers are getting in above HS category? This will help us to negotiate better with suppliers.

ANSWER:

Back in 2006 the rebate was only 9%, but it has gradually increased to the maximum 17% and has been at 17% since 2009.

Wishing you successful China sourcing!

Question answered by Mike Bellamy, host of “Ask the Experts” at the China Sourcing Information Center.

Mike Bellamy is an Advisory Board Member & Featured Blogger at the not-for-profit China Sourcing Information Center (www.ChinaSourcingInfo.org). He is also the author of, “The Essential Reference Guide to China Sourcing” (chinasourcinginfo.org/book) and founder of PassageMaker Sourcing Solutions (www.PSSchina.com )

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