“Announcement of the State Administration of Taxation on Issues Concerning the Administrative Measures for Value-added Tax and Consumption Tax on Export Goods and Services” SAT Announcement [2013] No.12 (“Announcement”)

In order to clarify issues in the previously promulgated “Administrative Measures on Value Added Tax and Consumption Tax for Exporting Goods and Services (SAT Announcement [2012] No. 24),” SAT released Announcement recently, which has been taken into effect on April 1, 2013.
Highlights of Announcement are as follows:

The tax of bonded materials and parts under the feeding processing trade shall be calculated based on the amount of real consumption instead of the amount of purchase.

To extend the term of tax refund (exemption) declaration. “Announcement” stipulates that the deadline for the application for the tax exemption on export goods and labor service is extended to the period from the following month to 31st May of the following year when such export incurred.

To add some provisions on preventing enterprises to handle tax refund (exemption) by fraud. Including, adding 15 situations that the VAT shall not be refunded or exempted; clarifying 3 situations related to export business and 1 situation related to export enterprises which tax refund shall not be applied temporarily.