Purchase of goods in China is a demanded direction on the Russian market. Knowing the VAT amount on a particular product, the scheme of its charging, reclaiming, you can significantly reduce the cost of the final price of the product. Value-added tax in China is mostly 17%, and it is lower for some categories of products: clothing 15%, shoes 13%. Taxes are refunded on the basis of the declaration, invoice.
Due to increase or decrease of return rate, the government of the PRC regulates the development of specific industries and foreign economic trade.
How to Cut Purchase Costs
The tax is paid first when purchasing raw materials for production. Then it is paid by intermediary wholesalers. Later, exporters go through the procedure when purchasing products. After sending a consignment for export, it is time for a VAT refund from 0% to 17%.
For the refund procedure Russian companies provide an international contract specifying the data of the parties, conditions, terms, shipping cost, invoice, goods declaration with the correct classification of products by CN FEA (Commodity Nomenclature of Foreign Economic Activity (HS)) codes, payment orders confirming payment of duties, taxes and dues. Declaration for return is submitted in the general order (at the end of the quarter) with the amounts of VAT. It is necessary to realize VAT refund within 3 years.
The terms of refund include cameral inspection of the tax service, which takes 7 days. In case of a positive decision the money is credited to the company's account within 12 days. In case of receipt of a refusal, the entrepreneur has the right to file a complaint with the Federal Tax Service and the court.
To purchase products in China for a cheaper price, please contact the experts of MW-Trade company on the phone numbers specified on the website or using the feedback form. We will provide competent advice and help reduce your expenses for cargo transportation from China.