AmCham-China

Tax Authorities Launch Inspection of Products Subject to Export VAT

The State Administration of Taxation ("SAT") recently issued a notice (Guoshuihan [2009] No. 235, hereinafter “Notice”) requiring the local tax authorities to carry out inspections of exports of products subject to export VAT. According to the Notice, the local tax authorities must submit summarized inspection reports and work papers to the Goods and Services Taxation Department of the SAT. These inspections target "high polluting, high energy consumption and resource-intensive" ("HHR") products, since these products generally are not entitled to an export VAT refund; instead, the export of such products is subject to VAT as in the case of domestic sales.

China Tax Analysis by Deloitte - June 30, 2009 (English, Chinese)