- Revised VAT refund policy for international transport vessels issued by China’s State Taxation Administration on April 21, 2025
- Clarifies refund eligibility and refines filing procedures for transport enterprises purchasing domestically built vessels
- VAT refund applies to vessels sold by domestic shipbuilders to enterprises engaged in international or cross-border operations
- Transport enterprise is the refund applicant, not the shipbuilder
- Refund amount corresponds to VAT on the special VAT invoice for the vessel
- Filing requires a record-filing form and proof of international transport qualifications
- First-time filers can submit documents electronically
- Existing records can be modified for vessel refunds without starting over
- Applications accepted from the first day of the month after invoice issuance until April 30 of the following year
- Required documents include Certificate of Vessel Ownership, business credentials, VAT invoice, and Self-use Goods VAT Refund Application Form
- Tax authorities will verify invoice authenticity and vessel tax filings
- False declarations result in recovery of refunded VAT and penalties
- VAT invoices credited as input tax cannot be used for refunds
- Changes in vessel ownership or registration, or cessation of international operations, require partial VAT repayment
- Repaid amount can be credited against future output VAT
- Policy aims to standardize and streamline VAT refunds, supporting international shipping industry compliance and reducing abuse risks
Source: china-briefing.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
