Announcement of the State Taxation Administration on Issuing the Administrative Measures for the Refunding of Value-added Tax on International Transport Vessels
Announcement of the State Taxation Administration on Issuing the Administrative Measures for the Refunding of Value-added Tax on International Transport Vessels
Announcement of the State Taxation Administration on Issuing the Administrative Measures for the Refunding of Value-added Tax on International Transport Vessels
Announcement of the State Taxation Administration [2020] No.18
December 2, 2020
In accordance with the Circular of the Ministry of Finance, the Ministry of Transport and the State Taxation Administration on Value-added Tax Policies concerning International Transport Vessels at the Hainan Free Trade Port (Cai Shui [2020] No.41) and the Circular of the Ministry of Finance, the Ministry of Transport and the State Taxation Administration on Value-added Tax Policies concerning International Transport Vessels at China (Shanghai) Pilot Free Trade Zone Lingang Special Area (Cai Shui [2020] No.52), the Administrative Measures for the Refunding of Value-added Tax on International Transport Vessels formulated by the State Taxation Administration are hereby issued.
The Announcement is hereby given.
Administrative Measures for the Refunding of Value-added Tax on International Transport Vessels
Article 1 The Measures are hereby formulated in accordance with the Circular of the Ministry of Finance, the Ministry of Transport and the State Taxation Administration on Value-added Tax Policies concerning International Transport Vessels at the Hainan Free Trade Port (Cai Shui [2020] No.41) and the Circular of the Ministry of Finance, the Ministry of Transport and the State Taxation Administration on Value-added Tax Policies concerning International Transport Vessels at China (Shanghai) Pilot Free Trade Zone Lingang Special Area (Cai Shui [2020] No.52) in order to standardize the administration of refunding of value-added tax (VAT) on international transport vessels.
Article 2 If a transport enterprise purchases the vessels conforming to the provisions of Article 1 of the Circular Cai Shui [2020] No.41 or the Circular Cai Shui [2020] No.52, the relevant VAT shall be refunded (the "vessel tax refunding") in accordance with the Measures.
The VAT refundable shall be the amount indicated on the special VAT invoice obtained by the transport enterprise for purchase of vessels.
Article 3 The tax authority in charge of tax refunding for transport enterprises (the "competent tax authority") is responsible for the record-filing, handling and subsequent administration of vessel tax refunding.
Article 4 A transport enterprise to which the policy for vessel tax refunding applies shall, when declaring vessel tax refunding for the first time, file vessel tax refunding with the competent tax authority for the record by virtue of the following materials and electronic data:
1. the Export Tax Refund (Exemption) Record-filing Form filled in truthfully and completely and its electronic data; the Form is issued by the Announcement of the State Taxation Administration on Issues concerning the Declaration of Export Tax Refund (Exemption) ([2018] No.16); among others, the enterprise should fill in "yes" for "whether to provide taxable services subject to zero tax rate"; fill in "01 (international transport services) " for the "code for providing taxable services subject to zero tax rate"; fill in "transport enterprises subject to vessel tax refunding" for "administration type of export tax refund (exemption)"; and fill in other fields as per the instructions; and
2. the supporting documents indicating that the transport enterprise is engaged in international transport and transport business of Hong Kong, Macao and Taiwan: a copy of the International Shipping Business Permit issued by the administrative department of transport (that shall indicate "consistent with the original" and be affixed with the official seal, the same below), if the transport enterprise is engaged in international transport of liquid dangerous goods in bulk or passengers; a copy of the certification materials of record-filing issued by the administrative department of transport, if the transport enterprise is engaged in transport of international containers or common goods; a copy of the approval document issued by the administrative department of transport, if the transport enterprise is engaged in transport between the Chinese Mainland and Hong Kong or Macao of liquid dangerous goods in bulk or passengers; a copy of the certification materials of record-filing issued by the administrative department of transport, if the transport enterprise is engaged in transport between the Chinese Mainland and Hong Kong or Macao of containers or common goods; the copies of the License for Waterway Transport Across Taiwan Straits and the License for Vessel Operation Across Taiwan Straits, if the transport enterprise is engaged in transport between the Chinese Mainland and Taiwan.
The transport enterprise may submit the above-mentioned materials electronically.
Article 5 Before the implementation of the Measures, a transport enterprise that has already competed the record-filing for export tax refund (exemption) is not required to do so again, but needs to handle the change in record-filing in accordance with Article 4 hereof.
While a transport enterprise applies the policy for vessel tax refunding, if it exports goods or services or carries out cross-border taxable activities subject to zero VAT rate, and has not handled the record-filing for export tax refund (exemption), it shall, at the time of handling the record-filing for tax refund (exemption), provide the materials specified in Article 4 hereof as well as other relevant materials in accordance with the current provisions.
Article 6 If a transport enterprise submits complete record-filing materials, fills in the Export Tax Refund (Exemption) Record-filing Form as required and affixes complete signature and seal to them, the competent tax authority shall handle the record-filing. If the record-filing materials or the contents filled in do not meet the requirements, the competent tax authority shall notify the transport enterprise on a one-time basis, and handle the record-filing after supplement and correction by the transport enterprise.
Article 7 If a transport enterprise that has filed vessel tax refunding for record has any change in nationality, owner or port of registry of vessels or is no longer engaged in international transport (or transport of Hong Kong, Macao and Taiwan), making it no longer meet the tax refunding conditions set forth in the Circular [2020] No.41 or the Circular [2020] No.52, it shall, within 30 days from the date of change in conditions, handle the change in record-filing with the competent tax authority by virtue of the relevant materials. From the date of change in conditions, the transport enterprise will no longer be subject to the policy for vessel tax refunding.
If the transport enterprise fails to handle the change in tax refunding record-filing in accordance with the provisions hereof but continues to declare vessel tax refunding, the competent tax authority shall punish it in accordance with Article 14 hereof.
Article 8 The period for a transport enterprise to declare vessel tax refunding is the period for VAT declaration from the first day of the month following the date of purchase of vessels (subject to the date of issuance of the invoice) to April 30 of the following year.
Article 9 In the period for tax refunding declaration, a transport enterprise may apply for vessel tax refunding to the competent tax authority on the strength of the following materials and electronic data:
1. copies of the materials specified in Items 1 and 2 of Article 3 of the Circular Cai Shui [2020] No.41 or in Items 1 and 2 of Article 3 of the Circular Cai Shui [2020] No.52; among them, the materials that have been submitted to the competent tax authority will not be required to be submitted again, if there is no change;
2. the Declaration Form for Tax Rebates on Goods Purchased for Personal Use and its electronic data; the form has been issued under the Announcement of the State Taxation Administration on Promulgating the Administrative Measures for Value-added Tax and Consumption Tax on Exported Goods and Services ([2012] No.24); the column of business type shall be filled in with "CBTS", and the remark column "vessel tax refunding";
3. the special VAT invoice issued by the domestic shipbuilding enterprise and its electronic information; and
4. other materials required by the competent tax authority.
The above-mentioned special VAT invoice shall be confirmed through the comprehensive service platform for VAT invoices as being "used for export tax refunding". The transport enterprise may submit the above-mentioned materials electronically.
Article 10 If the declaration of vessel tax refunding by a transport enterprise conforms to the provisions upon examination by the competent tax authority, the competent tax authority shall handle tax refunding in a timely manner in accordance with the provisions. If any doubts are found during the examination, the competent tax authority may handle tax refunding after confirming the authenticity of the special VAT invoice obtained by the transport enterprise for purchase of vessels and that tax has been filed for the vessels listed in the invoice.
Article 11 If the special VAT invoice obtained by a transport enterprise for purchase of vessels has been used for input tax deduction, it may not be used for vessel tax refunding; if the said invoice has been used for vessel tax refunding, it may not be used for input tax deduction.
Article 12 If any vessel, on which VAT has been refunded, has any change in nationality, owner or port of registry or is no longer engaged in international transport (transport of Hong Kong, Macao and Taiwan), making it no longer meet the tax refunding conditions set forth in the Circular Cai Shui [2020] No.41 or the Cai Shui [2020] No.52, the transport enterprise concerned shall make up the refunded tax to the competent tax authority within the tax declaration period in the month following the change in conditions.
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Announcement of the State Taxation Administration [2020] No.18
December 2, 2020
In accordance with the Circular of the Ministry of Finance, the Ministry of Transport and the State Taxation Administration on Value-added Tax Policies concerning International Transport Vessels at the Hainan Free Trade Port (Cai Shui [2020] No.41) and the Circular of the Ministry of Finance, the Ministry of Transport and the State Taxation Administration on Value-added Tax Policies concerning International Transport Vessels at China (Shanghai) Pilot Free Trade Zone Lingang Special Area (Cai Shui [2020] No.52), the Administrative Measures for the Refunding of Value-added Tax on International Transport Vessels formulated by the State Taxation Administration are hereby issued.
The Announcement is hereby given.
Administrative Measures for the Refunding of Value-added Tax on International Transport Vessels
Article 1 The Measures are hereby formulated in accordance with the Circular of the Ministry of Finance, the Ministry of Transport and the State Taxation Administration on Value-added Tax Policies concerning International Transport Vessels at the Hainan Free Trade Port (Cai Shui [2020] No.41) and the Circular of the Ministry of Finance, the Ministry of Transport and the State Taxation Administration on Value-added Tax Policies concerning International Transport Vessels at China (Shanghai) Pilot Free Trade Zone Lingang Special Area (Cai Shui [2020] No.52) in order to standardize the administration of refunding of value-added tax (VAT) on international transport vessels.
Article 2 If a transport enterprise purchases the vessels conforming to the provisions of Article 1 of the Circular Cai Shui [2020] No.41 or the Circular Cai Shui [2020] No.52, the relevant VAT shall be refunded (the "vessel tax refunding") in accordance with the Measures.
The VAT refundable shall be the amount indicated on the special VAT invoice obtained by the transport enterprise for purchase of vessels.
Article 3 The tax authority in charge of tax refunding for transport enterprises (the "competent tax authority") is responsible for the record-filing, handling and subsequent administration of vessel tax refunding.
Article 4 A transport enterprise to which the policy for vessel tax refunding applies shall, when declaring vessel tax refunding for the first time, file vessel tax refunding with the competent tax authority for the record by virtue of the following materials and electronic data:
1. the Export Tax Refund (Exemption) Record-filing Form filled in truthfully and completely and its electronic data; the Form is issued by the Announcement of the State Taxation Administration on Issues concerning the Declaration of Export Tax Refund (Exemption) ([2018] No.16); among others, the enterprise should fill in "yes" for "whether to provide taxable services subject to zero tax rate"; fill in "01 (international transport services) " for the "code for providing taxable services subject to zero tax rate"; fill in "transport enterprises subject to vessel tax refunding" for "administration type of export tax refund (exemption)"; and fill in other fields as per the instructions; and
2. the supporting documents indicating that the transport enterprise is engaged in international transport and transport business of Hong Kong, Macao and Taiwan: a copy of the International Shipping Business Permit issued by the administrative department of transport (that shall indicate "consistent with the original" and be affixed with the official seal, the same below), if the transport enterprise is engaged in international transport of liquid dangerous goods in bulk or passengers; a copy of the certification materials of record-filing issued by the administrative department of transport, if the transport enterprise is engaged in transport of international containers or common goods; a copy of the approval document issued by the administrative department of transport, if the transport enterprise is engaged in transport between the Chinese Mainland and Hong Kong or Macao of liquid dangerous goods in bulk or passengers; a copy of the certification materials of record-filing issued by the administrative department of transport, if the transport enterprise is engaged in transport between the Chinese Mainland and Hong Kong or Macao of containers or common goods; the copies of the License for Waterway Transport Across Taiwan Straits and the License for Vessel Operation Across Taiwan Straits, if the transport enterprise is engaged in transport between the Chinese Mainland and Taiwan.
The transport enterprise may submit the above-mentioned materials electronically.
Article 5 Before the implementation of the Measures, a transport enterprise that has already competed the record-filing for export tax refund (exemption) is not required to do so again, but needs to handle the change in record-filing in accordance with Article 4 hereof.
While a transport enterprise applies the policy for vessel tax refunding, if it exports goods or services or carries out cross-border taxable activities subject to zero VAT rate, and has not handled the record-filing for export tax refund (exemption), it shall, at the time of handling the record-filing for tax refund (exemption), provide the materials specified in Article 4 hereof as well as other relevant materials in accordance with the current provisions.
Article 6 If a transport enterprise submits complete record-filing materials, fills in the Export Tax Refund (Exemption) Record-filing Form as required and affixes complete signature and seal to them, the competent tax authority shall handle the record-filing. If the record-filing materials or the contents filled in do not meet the requirements, the competent tax authority shall notify the transport enterprise on a one-time basis, and handle the record-filing after supplement and correction by the transport enterprise.
Article 7 If a transport enterprise that has filed vessel tax refunding for record has any change in nationality, owner or port of registry of vessels or is no longer engaged in international transport (or transport of Hong Kong, Macao and Taiwan), making it no longer meet the tax refunding conditions set forth in the Circular [2020] No.41 or the Circular [2020] No.52, it shall, within 30 days from the date of change in conditions, handle the change in record-filing with the competent tax authority by virtue of the relevant materials. From the date of change in conditions, the transport enterprise will no longer be subject to the policy for vessel tax refunding.
If the transport enterprise fails to handle the change in tax refunding record-filing in accordance with the provisions hereof but continues to declare vessel tax refunding, the competent tax authority shall punish it in accordance with Article 14 hereof.
Article 8 The period for a transport enterprise to declare vessel tax refunding is the period for VAT declaration from the first day of the month following the date of purchase of vessels (subject to the date of issuance of the invoice) to April 30 of the following year.
Article 9 In the period for tax refunding declaration, a transport enterprise may apply for vessel tax refunding to the competent tax authority on the strength of the following materials and electronic data:
1. copies of the materials specified in Items 1 and 2 of Article 3 of the Circular Cai Shui [2020] No.41 or in Items 1 and 2 of Article 3 of the Circular Cai Shui [2020] No.52; among them, the materials that have been submitted to the competent tax authority will not be required to be submitted again, if there is no change;
2. the Declaration Form for Tax Rebates on Goods Purchased for Personal Use and its electronic data; the form has been issued under the Announcement of the State Taxation Administration on Promulgating the Administrative Measures for Value-added Tax and Consumption Tax on Exported Goods and Services ([2012] No.24); the column of business type shall be filled in with "CBTS", and the remark column "vessel tax refunding";
3. the special VAT invoice issued by the domestic shipbuilding enterprise and its electronic information; and
4. other materials required by the competent tax authority.
The above-mentioned special VAT invoice shall be confirmed through the comprehensive service platform for VAT invoices as being "used for export tax refunding". The transport enterprise may submit the above-mentioned materials electronically.
Article 10 If the declaration of vessel tax refunding by a transport enterprise conforms to the provisions upon examination by the competent tax authority, the competent tax authority shall handle tax refunding in a timely manner in accordance with the provisions. If any doubts are found during the examination, the competent tax authority may handle tax refunding after confirming the authenticity of the special VAT invoice obtained by the transport enterprise for purchase of vessels and that tax has been filed for the vessels listed in the invoice.
Article 11 If the special VAT invoice obtained by a transport enterprise for purchase of vessels has been used for input tax deduction, it may not be used for vessel tax refunding; if the said invoice has been used for vessel tax refunding, it may not be used for input tax deduction.
Article 12 If any vessel, on which VAT has been refunded, has any change in nationality, owner or port of registry or is no longer engaged in international transport (transport of Hong Kong, Macao and Taiwan), making it no longer meet the tax refunding conditions set forth in the Circular Cai Shui [2020] No.41 or the Cai Shui [2020] No.52, the transport enterprise concerned shall make up the refunded tax to the competent tax authority within the tax declaration period in the month following the change in conditions.
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