New VAT Refund Rates to Take Effect Dec. 1

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Nov. 19 – As we reported last week, China recently moved to increase the value-added tax (VAT) refund rate on certain products including steel, grain, chemical goods and thousands of other goods as part of its efforts to quicken growth. The new VAT refund rates, effective Dec. 1, will cover some 3,770 types of exports, or about 28 percent of the country’s total exports.

Below we list several of the applicable rate changes:

The VAT refund rate for rubber tires and forest products made from fast-growing materials will increase from 5 to 9 percent.

The VAT refund rate for some metal stamping molds and glassware will increase from 5 to 11 percent.

The VAT refund rate for some types of frozen shrimp and crab will increase from 5 to 13 percent.

The VAT refund rate for bags, shoes, maps, umbrellas, bedding, and lights will increase from 11 to 13 percent;

The VAT refund rate for toothpaste and related chemical products, stone materials, aluminum boards and the related ferrous metal product will increased from 5 and 9 percent to 11 and 13 percent.

The VAT refund rate for some home appliances, motorbikes, agriculture pumps, and bicycles will increase from 9 to 13 percent, 11 to 13 percent and 13 to 14 percent.

A full list of the products affected and the applicable rate changes can be found here (in Chinese).