Important deadline – Beijing VAT refund for export of service deadline 31st of January 2014! –

By Richard Hoffmann, ECOVIS Beijing China

We just received inside information about the planned refund deadline for VAT paid between 1st August 2012 and October 2013 will likely be 31st of January 2014 for the municipal Beijing. It is expected that the STB will publicly announce this deadline in early November, following the Announcement of Shanghai on 29 of October 2013. The deadline for hand in of VAT refund applications in Beijing will probably be on the 31st of January 2014 whereas companies seated in Shanghai have to apply till 31st of December 2013! The refundable period reflects the different start of each municipal’s VAT-Pilot Program, which were 1st of August 2012 in Beijing and January 1st 2012 in Shanghai. In the Shanghai Announcement the STB defines the deadline of the tax bureau for clearance of VAT refund to be the 28th of January 2014. For future tax exemption it is a preliminary procedure to complete before the taxpayers can enjoy the exemption. Read from the draft circular of Beijing, there will be quite detailed criteria and information announced by the Beijing STB, in terms of what services are applicable, and what documents are required. They are not as detailed as the Shanghai guidelines but they will make the tax exemption process clearer and easier. For example, the recipient of certain services needs to provide registration documents in their home country, in order for the service provider to prove the service is rendered to a foreign party. We anticipate that, after the initial announcement in the beginning of this month everyone will approach the STB in order to ask for refund. For fast progress and quick money refund it’s recommended to act quickly as otherwise the mass of applications might lead to long waiting periods and a possible loss of liquidity by your side. All companies in Beijing, don’t forget to apply until 31st of January 2014 or you might not have the chance to get any VAT refunded!

Act now and contact us  to get your money back fast!

Contact: Richard Hoffmann Conultant, Ass. Jur., Partner ECOVIS Beijing China Ecovis Beijing Tel.: +86 10 6561 6609 (ext. 811) Mobile: +86 186 0131 8781 Fax: +86 10-6561 6501 E-Mail: richard.hoffmann@ecovis.com Grace Shi CPA, CTA, MBA, Partner ECOVIS Beijing China Ecovis Beijing Tel.: +86 10 6561 6609 (ext. 806) Mobile: +86 186 1080 5757 Fax: +86 10 6561 6501 E-Mail: grace.shi@ecovis.com