Date Topic What is new?
SAT Announcement  No. 4 2017-2-22 2017-3-1 Issuance of special VAT invoices by small-scale VAT payers of assurance and consulting industry The Announcement stipulates that small-scale VAT payers of assurance and consulting industry with monthly sales of more than RMB 30,000 or quarterly sales of more than RMB 90,000 can issue special VAT invoices by themselves without applying with the tax authorities for issuing special VAT invoices on their behalf for provision of taxable services such as assurance, verification, consulting, sales of goods and carrying out other taxable activities. However, such taxpayers are not allowed to issue special VAT invoices by themselves for sales of immovable properties.
SAT Announcement  No. 5 2017-3-14 2016-1-1 VAT refund to R&D institutions for purchase of domestically produced equipment The Announcement is an administrative measure, covering an effective period from 1 January 2016 to 31 December 2018, of the circular Caishui  No. 121 regarding VAT refund to R&D institutions which purchased domestically produced equipment. The Announcement has made some changes to the superseded administrative measures having expired by 31 December 2015. The main changes are as follows:
• The formalities that a qualified R&D institution needs to go through with the tax authorities have been changed from the original “recognition”, “change” and “de-registration of recognition” to the current “recordal”, “change” and “withdrawal of recordal”.
• VAT amounts reflected on normal VAT invoices can also be considered as refundable tax amounts, but the tax authorities in charge of tax refund must investigate the cases first where normal VAT invoices are used by general VAT payers as vouchers for VAT refund declaration.
• Foreign-invested R&D institutions shall withdraw the recordal of VAT refund within 30 days after the change of situations to stop enjoying the policy if they no longer meet the conditions for VAT refund of purchase of domestically produced equipment due to the change of situations.
• The supervision period of VAT refund has been changed from 5 years to 3 years. In other words, if the ownership of equipment with VAT refunded is transferred or the underlying equipment is used for other purposes within 3 years after the issuance of VAT invoices, the R&D institution shall make up the refunded VAT based on the portion of net value accounting for the original value of the equipment.