Be Careful to apply for VAT Credit Refund! Featured

Monday, 07 November 2022 07:35

Influenced by the pandemic, the A foreign company in order to relieve the pressure of cash flow. It has applied credit refund directly when the tax bureau has introduced the favorable policy of   value-added tax credit refund. After credit refund application has been approved, the A foreign company has wanted to low the workshops costs, so that it has found cheaper workshops in other areas and signed housing rent agreement. The company has decided to move to the newly workshops to run their businesses. While it has proposed to move, the tax bureau has told the company that enterprises should have half of year silent periods after applying credit refund. Among the periods, enterprises could not ask for moving the locations. Therefore, the plan that the company has moved address has to delayed half of a year, it has caused a huge loss to the A foreign company.


DongJin Remind:

To relieve the pandemic has caused the economic pressure to the Chinese enterprises, the tax bureau has issued favorable policy which enterprises could apply value-added tax credit refund. But DongJin has needed to notice relevant enterprises to have attention: once they have applied credit refund to tax bureau, the bureau might take a tax check. In one hand, DongJin has found that some enterprises their own tax situation was not perfect. They might be examined problems under the tax check. Facing tax evaded, paying overdue fine and even punishing. On the other hand, in case enterprises have asked for credit refund, the tax bureau could set half of year silent periods. During this time, they could not apply moving, recombination and logout etc. So, DongJin has particularly reminded: if enterprises have had above plans, please consider carefully about credit refunding.


Mike Chang


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