Two Authorities Adjust the Scope of Goods Subject to VAT and Consumption Tax Refunds in the Guangdong-Macao In-Depth Cooperation Zone in Hengqin

Recently, the Ministry of Finance (MOF) and the State Taxation Administration (STA) have jointly released the Circular on Adjusting the Scope of Goods Subject to Value-Added Tax and Consumption Tax Refunds in the Guangdong-Macao In-Depth Cooperation Zone in Hengqin (the "Circular"), which will be effective from the date of official customs closure operation of the cooperation zone.

According to the Circular, relevant goods entering the cooperation zone from the mainland through the "second line" will be treated as exports, and they will be subject to the value-added tax (VAT) and consumption tax refund policies. However, the following goods are excluded: (1) export goods for which the MOF and the STA have specified that VAT refund (exemption) and duty-free policies are not applicable; (2) other goods sold from the mainland to the cooperation zone that are not eligible for a tax refund, and the specific scope of these goods is set out in the attached List of Goods Sold from Mainland to the Guangdong-Macao In-Depth Cooperation Zone in Hengqin Not Eligible for Tax Refunds; and (3) goods purchased by enterprises that have been disqualified from receiving tax refunds or exemptions in accordance with relevant provisions.



(Source: http://szs.mof.gov.cn/zhengcefabu/202401/t20240115_3925944.htm)

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