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Processing VAT Rebate in China

Maximize Your VAT Tax Refund, Reduce Headaches & Avoid Costly Processing Errors

Manufacturing in China and Exporting Your Products or Goods? You’re Most Likely Eligible for a VAT Rebate.

While VAT rebates on exports are far from new, many companies manufacturing in China are not yet aware of the intricacies of who or what is eligible for a VAT rebate, and when.

This is especially true for companies who’re outsourcing their manufacturing to a local partner, or buying components or materials from local suppliers.

While not absolute, it can be fairly common that these local partners and suppliers will gain the rebate for themselves, not passing on the saving to you and thereby increasing your costs and that of your customers.

Why Vendors Try to Use VAT to their Advantage

If you don’t know the VAT rebate amount, then you don’t really know your vendor’s true pricing. This can complicate negotiations and vendor comparisons. The vendor may be pocketing the VAT rebate without explaining it, thereby inflating your costs!

Why Local Manufacturing Partners Try to Use VAT to their Advantage

Many Chinese companies lack import-export rights and proper China VAT processing facilities but never disclose this. They are forced to use 3rd party trading companies to handle your export and VAT rebate which inflate the price, complicate the relationship, and leak your proprietary information. This can often happen without your knowledge, with the net result being your costs increasing and your IP being at risk!

How PassageMaker Can Protect You With VAT Rebate Processing

PassageMaker have been manufacturing, exporting, and processing VAT rebate in China for 2 decades. Unlike many local partners who’d turn to yet another local trading company to handle your private affairs without you even knowing, we are US run, but have our own China VAT processing operation.

By working with us to handle your VAT rebate processing, we consult you in plain English, examining and understanding in great detail your exact business position with regards to VAT, your suppliers, products, and company structure.

Most projects follow the following steps:

  1. Document Review
  2. Communications with Customs Bureau and Vendors
  3. Analysis of Findings/ Report Creation
  4. Delivery of Findings/ Conference Call

What We Do

Key tasks include:

  • Contact with relevant authorities to confirm the applicable VAT rebate amount for the given production classification.
  • Review of current quotations and terms from client’s vendors in order to advise on VAT strategy.
  • Review of client’s PRC based entities’ business license, tax payer status and scope of business in order to advise on efficiency of VAT processing.
  • Review of client’s vendor’s business license, tax payer status and scope of business in order to advise on efficiency of China VAT processing.
  • Provision of “VAT Strategy Assessment and Suggestions” report in an easy to understand, English language format.
  • Our experts will:
  • Leverage our own VAT licensing to verify rates with the tax bureau and customs authorities. We do this to keep your suppliers honest about VAT and offer full visibility.
  • Facilitate a transparent VAT application and organize the refund in full accordance with local regulations to ensure you’re not overcharged by a 3rd Party or exposed to any unexpected tax liabilities.
  • Now you can get on with your business knowing that there’s no funny-business going on behind the scenes in China which undermines your profit margins!
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