May 28 2021

Two Authorities Release Policies on Refund of Term-End Excess Input VAT Credits in Advanced Manufacturing Industries

Announcement by Ministry of Finance (MOF)and the State Administration of Taxation (SAT)

The Ministry of Finance and the State Taxation Administration released on April 28, 2021 the Announcement about Clarifying Policies on the Refund of Term-End Excess Input Value-Added Tax Credits in Advanced Manufacturing Industries.

According to the announcement, from April 1, 2021 taxpayers in the advanced manufacturing industries that meet five conditions will be eligible to apply for refund of term-end excess input value-added tax credits.

The scope of taxpayers in the advanced manufacturing industries will be expanded compared to what was stipulated in the No.84 document for 2019. Companies engaged in the production and sale of medicine, chemical fiber, railroad, ship, aerospace & aviation and other transport equipment, electric & mechanical devices as well as instruments & meters are included into the taxpayers in the advanced manufacturing industries.