Participants
To see the list of participants click here
Agenda
1. Presentation on the changes to the VAT Refund Rates by Mr. Bernhard Weber, Vice President at Jiangsu BS Home Appliances Sales Co., Ltd.
2. Roundtable Discussion
Discussion points
In answer to the increasing pressure on China in regards to the excessive trade surplus and environmental protection concerns, the Ministry of Finance and State Administration of Taxation announced a major change in the export VAT refund rates on June 19, 2007 and will be effective July 1.
The new export VAT rebates affect over 2831 types of commodities that represent 38% of China’s export value. This change has a significant impact on exporters whose products fall within the category of “high-energy consuming, high polluting and/or involve low tech and low value-adding manufacturing process”
At the meeting members discussed the impact of the changes on their business and potential measures to limit the impact.
Ø Tariff coding: identify alternative commodity codes, which provide higher VAT export refund rates
Ø Supply chain model: evaluate the tax efficiency of the currently used export business model in the supply chain
Ø Designated zones: export processing zones could be considered to reduce the potential impact
Ø Increase of bonded imports: increase of imports or conversion of domestic purchases into imports. The use of bonded logistics parks can help facilitate this process
To download the presentation click here
The next meeting of the Finance and Taxation Working Group, Nanjing Chapter will be held on September 12th.