Announcement on Improving the End-of-Period Excess Input Value-Added Tax Credit Refund Policies
Announcement on Improving the End-of-Period Excess Input Value-Added Tax Credit Refund Policies
Announcement on Improving the End-of-Period Excess Input Value-Added Tax Credit Refund Policies
Announcement of the Ministry of Finance and the State Taxation Administration [2025] No. 7
August 22, 2025
The matters concerning the improvement of the end-of-period excess input value-added tax (VAT) credit refund policies are hereby announced as follows:
1. Starting from the VAT filing period of September 2025, eligible general VAT taxpayers (hereinafter referred to as “taxpayers”) may apply to the competent tax authorities for a refund of their end-of-period excess input tax credit in accordance with the following provisions:
(1) Taxpayers in the “manufacturing industry,” “scientific research and technical services industry,” “software and information technology services industry,” and “ecological protection and environmental governance industry” (hereinafter collectively referred to as the “four industries including manufacturing”) may apply to the competent tax authorities for a refund of their end-of-period excess input tax credit on a monthly basis.
(2) Taxpayers in the real estate development and operation industry whose newly increased end-of-period excess input tax credit for six consecutive months (or two consecutive quarter for taxpayers paying taxes on a quarterly basis, hereinafter the same) prior to applying for the refund is all greater than zero, and the newly increased end-of-period excess input tax credit in the sixth month (or the second quarter for taxpayers paying taxes on a quarterly basis, hereinafter the same) is not less than CNY 500,000, compared with the end-of-period excess input tax credit as of March 31, 2019, may apply to the competent tax authorities for a refund of 60% of the newly increased end-of-period excess input tax credit in the sixth month (or second quarter).
(3) Taxpayers other than those in the four industries including manufacturing and the real estate development and operation industry, whose end-of-period excess input tax credit for six consecutive months prior to applying for the refund is all greater than zero, and the newly increased end-of-period excess input tax credit in the sixth month compared with the end-of-period excess input tax credit as of December 31 of the previous year of the tax payment period before the application is not less than CNY 500,000, may apply to the competent tax authorities for a proportional refund of the newly increased excess input tax credit. For the portion of the newly increased excess input tax credit not exceeding CNY 100 million (inclusive), the refund ratio shall be 60%; for the portion exceeding CNY 100 million, the refund ratio shall be 30%.
Taxpayers in the real estate development and operation industry who do not meet the requirements under Item (2) of this Article may apply for a refund of their end-of-period excess input tax credit in accordance with the provisions of Item (3) of this Article.
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Announcement of the Ministry of Finance and the State Taxation Administration [2025] No. 7
August 22, 2025
The matters concerning the improvement of the end-of-period excess input value-added tax (VAT) credit refund policies are hereby announced as follows:
1. Starting from the VAT filing period of September 2025, eligible general VAT taxpayers (hereinafter referred to as “taxpayers”) may apply to the competent tax authorities for a refund of their end-of-period excess input tax credit in accordance with the following provisions:
(1) Taxpayers in the “manufacturing industry,” “scientific research and technical services industry,” “software and information technology services industry,” and “ecological protection and environmental governance industry” (hereinafter collectively referred to as the “four industries including manufacturing”) may apply to the competent tax authorities for a refund of their end-of-period excess input tax credit on a monthly basis.
(2) Taxpayers in the real estate development and operation industry whose newly increased end-of-period excess input tax credit for six consecutive months (or two consecutive quarter for taxpayers paying taxes on a quarterly basis, hereinafter the same) prior to applying for the refund is all greater than zero, and the newly increased end-of-period excess input tax credit in the sixth month (or the second quarter for taxpayers paying taxes on a quarterly basis, hereinafter the same) is not less than CNY 500,000, compared with the end-of-period excess input tax credit as of March 31, 2019, may apply to the competent tax authorities for a refund of 60% of the newly increased end-of-period excess input tax credit in the sixth month (or second quarter).
(3) Taxpayers other than those in the four industries including manufacturing and the real estate development and operation industry, whose end-of-period excess input tax credit for six consecutive months prior to applying for the refund is all greater than zero, and the newly increased end-of-period excess input tax credit in the sixth month compared with the end-of-period excess input tax credit as of December 31 of the previous year of the tax payment period before the application is not less than CNY 500,000, may apply to the competent tax authorities for a proportional refund of the newly increased excess input tax credit. For the portion of the newly increased excess input tax credit not exceeding CNY 100 million (inclusive), the refund ratio shall be 60%; for the portion exceeding CNY 100 million, the refund ratio shall be 30%.
Taxpayers in the real estate development and operation industry who do not meet the requirements under Item (2) of this Article may apply for a refund of their end-of-period excess input tax credit in accordance with the provisions of Item (3) of this Article.
2.
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