Announcement of the Ministry of Finance and the State Taxation Administration on Further Strengthening the Implementation of Policies Regarding Period-End Value-Added Tax Credit RefundFor the purposes of supporting the development of small and micro enterprises and manufacturing and other industries, boosting the confidence of market players, and stimulating the vitality of market players, relevant policies concerning further strengthening the implementation of period-end value-added tax (VAT) credit refund are hereby announced as follows:　　I. Policies regarding period-end VAT credit refund for small and micro enterprises shall be stepped up by expanding the scope of the policy regarding monthly full period-end VAT credit refund in advanced manufacturing industries to cover eligible small and micro enterprises (including privately or individually-owned businesses, the same below), and refunding the existing VAT credit of small and micro enterprises in a lump sum.　　(I) Eligible small and micro enterprises may apply to competent tax authorities for the refund of incremental VAT credit from the tax return filing period of April 2022. Before December 31, 2022, conditions for tax refund shall be as per Article III of this Announcement.　　(II) Eligible micro enterprises may apply to competent tax authorities for the refund of existing VAT credit in a lump sum from the tax return filing period of April 2022; eligible small enterprises may apply to competent tax authorities for the refund of existing VAT credit in a lump sum from the tax return filing period of May 2022.　　II. Policies regarding the refund of period-end VAT credit in manufacturing, scientific research and technical service, electric power, heat, gas, and water production and supply, software and information technology service, ecological protection and environmental governance, and transportation, warehousing, and postal service industries (hereinafter referred to as “manufacturing and other industries”) shall be stepped up; the scope of the policy regarding monthly full period-end VAT credit refund in advanced manufacturing industries shall be expanded to cover eligible enterprises in manufacturing and other industries (including privately or individually-owned businesses, the same below), and the existing VAT credit shall be refunded to enterprises in manufacturing and other industries in a lump sum.　　(I) Eligible enterprises in manufacturing and other industries may apply to competent tax authorities for the refund of incremental VAT credit from the tax return filing period of April 2022.　　(II) Eligible medium-sized enterprises in manufacturing and other industries may apply to competent tax authorities for the refund of existing VAT credit in a lump sum from the tax return filing period of July 2022; eligible large enterprises in manufacturing and other industries may apply to competent tax authorities for the refund of existing VAT credit in a lump sum from the tax return filing period of October 2022.　　III. A taxpayer eligible for the policies in this Announcement shall simultaneously meet the following conditions:　　(I) It has a tax credit rating of Grade A or Grade B;　　(II) It has no record of fraudulently obtaining the refund of any VAT credit or export tax rebate, or falsely issuing a special VAT invoice within 36 months before applying for a tax refund;　　(III) It has not been punished by a tax authority twice or more for tax evasion within 36 months before applying for a tax refund;　　(IV) It has not enjoyed the policies regarding immediate refund upon collection or return (refund) after collection from April 1, 2019.　　IV. “Incremental VAT credit” as mentioned in this Announcement shall be determined according to the following circumstances:　　(I) Before a taxpayer obtains the refund of existing VAT credit in a lump sum, the incremental VAT credit shall be the increase in period-end VAT credit of the current period as compared to March 31, 2019.　　(II) After a taxpayer obtains the refund of existing VAT credit in a lump sum, the incremental VAT credit shall be the period-end VAT credit of the current period.　　V. “Existing VAT credit” as mentioned in this Announcement shall be determined according to the following circumstances:　　(I) Before a taxpayer obtains the refund of existing VAT credit in a lump sum, if the period-end VAT credit of the current period is greater than or equal to the period-end VAT credit by March 31, 2019, the existing VAT credit shall be the period-end VAT credit by March 31, 2019; if the period-end VAT credit of the current period is less than the period-end VAT credit by March 31, 2019, the existing VAT credit shall be the VAT credit of the current period.　　(II) After a taxpayer obtains the refund of existing VAT credit in a lump sum, the existing VAT credit shall be zero.　　VI. The medium-sized enterprises, small enterprises, and micro enterprises referred to in this Announcement are determined according to the operating revenue and total assets indicators in the Provisions on the Criteria for Classifying Small and Medium-sized Enterprises(Gong Xin Bu Lian Qi Ye [2011] No. 300) and the Provisions on the Size Classification Standards for Financial Enterprises(Yin Fa [2015] No. 309). Among them, the total assets indicator is determined according to the end-of-year value in the previous fiscal year of the taxpayer. The operating revenue indicator is determined according to the sales volume subject to VAT of the taxpayer in the previous fiscal year. If the period is less than one fiscal year, the calculation shall be done according to the following formula:　　Sales volume subject to VAT (annual) = sales volume subject to VAT during the actual period of existence of the enterprise in the previous fiscal year/number of months of the actual period of existence of the enterprise × 12　　The sales volume subject to VAT referred to in this Announcement includes the sales volume in the filing of a tax return, the sales volume added upon audit, and the sales volume adjusted upon tax assessment. If the differential VAT collection policy is applied, it shall be determined based on the sales volume after the differential.　　For taxpayers in industries other than those listed in Gong Xin Bu Lian Qi Ye [2011] No. 300 Yin Fa [2015] No. 309 documents, and those in industries listed in the Gong Xin Bu Lian Qi Ye [2011] No. 300 [2011] document but not classified or determined using operating revenue or total assets indicators, the standard for micro enterprises is that (annual) sales volume subject to VAT shall be less than CNY 1 million (excluding CNY 1 million); the standard for small enterprises is that (annual) sales volume subject to VAT shall be less than CNY 20 million (excluding CNY 20 million); the standard for medium-sized enterprises is that (annual) sales volume subject to VAT shall be less than CNY 100 million (excluding CNY 100 million).　　Large enterprises referred to in this Announcement refer to enterprises other than the above-mentioned medium-sized enterprises, small enterprises, and micro enterprises.　　VII. The enterprises in manufacturing and other industries mentioned in this Announcement refer to enterprises engaged in manufacturing, scientific research and technical service, electric power, heat, gas, and water production and supply, software and information technology services, ecological protection and environmental governance and transportation, warehousing, and postal service industries in the Industrial Classification for National Economic Activities, with the corresponding sales volume subject to VAT accounting for more than 50% of the total sales volume subject to VAT.　　The above proportion of sales volume is calculated and determined according to the sales volume in the 12 consecutive months before the taxpayers apply for a tax refund; if the operating period before applying for the tax refund is less than 12 months but more than 3 months, calculation and determination shall be done according to the sales volume in the actual operating period.　　VIII. The taxpayers eligible for policies in this Announcement shall calculate the refundable VAT credit according to the following formulas:　　Refundable incremental VAT credit=incremental VAT credit × component ratio of VAT paid in taxes on purchases×100%　　Refundable existing VAT credit=existing VAT credit × component ratio of VAT paid in taxes on purchases×100%　　The component ratio of VAT paid in taxes on purchases refers to the proportion of the amount of VAT indicated on the credited special VAT invoices (including fully digitalized electronic invoices with the words “special VAT invoice” and tax-control uniform invoices for the sale of motor vehicles), electronic general VAT invoices for turnpike tolls, special customs bills of payment for VAT on imported goods, and vouchers for the payment of remitted taxes during the period from April 2019 to the taxable period before a tax refund is applied for in the total tax on purchases that has been credited over the same period of time.　　IX. Taxpayers who are eligible for the method of tax exemption, credit, and rebate due to exporting goods and services and engaging in cross-border taxable acts should first apply for tax exemption, credit, and rebate. If they still meet the conditions stipulated in this Announcement after the completion of tax exemption, credit, and rebate, they may apply for the refund of VAT credit; if they are eligible for the method of tax exemption and rebate, the relevant amount of tax on purchases shall not be used for the refund of VAT credit.　　X. Taxpayers who have obtained the refund of VAT credit since April 1, 2019 shall not apply to enjoy the policy of immediate VAT refund upon collection or return (refund) after collection. Taxpayers may apply to enjoy the policy of immediate VAT refund upon collection and return (refund) after collection according to regulations by paying back all the refunded VAT credit obtained in a lump sum before October 31, 2022.　　Taxpayers who have enjoyed the policy of immediate VAT refund upon collection and return (refund) after collection since April 1, 2019 may apply for the refund of VAT credit according to regulations after paying back all the refunded taxes under the said policy in a lump sum before October 31, 2022.　　XI. Taxpayers may choose to apply to the competent tax authorities for the refund of VAT credit or carry forward the VAT credit to the next period for rebate. Taxpayers should apply for the refund of VAT credit after completing the VAT return for the current period. The application period for the refund of VAT credit from April to June 2022 is extended to the last working day of each month.　　Taxpayers may apply for both the refund of incremental VAT credit and the refund of existing VAT credit within the specified period. Taxpayers who are simultaneously eligible for policies regarding the refund of VAT credit in Article I and Article II of this Announcement may choose to apply for the above-mentioned policies on refund of VAT credit as they deem fit.　　XII. After taxpayers receive the refund of VAT credit, the VAT credit of the current period should be reduced accordingly.　　If a taxpayer is found to have been incorrectly deemed eligible for policies concerning the refund of VAT credit, the taxpayer should pay back the relevant refund of VAT credit before the end of the next tax return period.　　If a taxpayer fraudulently obtains the refund of VAT credit by adding false purchases, making false declarations, or by other deceptive means, the tax authorities shall recover the tax refunds fraudulently obtained by the taxpayer and punish it in accordance with the Law of the People’s Republic of China on the Administration of Tax Collectionand other relevant regulations.　　XIII. The tax administration matters for handling the refund of VAT credit of taxpayers who are eligible for the policies regarding the refund of VAT credit stipulated in this Announcement shall continue to be implemented in accordance with the existing regulations.　　XIV. The regulations on the application for refund of incremental VAT credit by taxpayers other than the above-mentioned ones shall continue to be executed in accordance with the Announcement of the Ministry of Finance, the State Taxation Administration, and the General Administration of Customs on Relevant Policies for Deepening the Value-Added Tax Reform(Announcement [2019] No. 39 of the Ministry of Finance, the State Taxation Administration and the General Administration of Customs), of which “component ratio of VAT paid in taxes on purchases” in Article VIII, paragraph three shall be executed in accordance with the provisions of Article VIII of this Announcement.　　XV. Finance and taxation departments at all levels must attach great importance to work related to the refund of VAT credit, ascertain the base amount, make careful planning, strengthen publicity, engage in close collaboration, seek coordinated progress, and carry out the centralized refund of existing VAT credit to micro, small, medium-sized and large enterprises respectively before April 30, June 30, September 30, and December 31, 2022, on the basis of voluntary applications by taxpayers. Tax departments shall handle the refund of VAT credit for taxpayers in a standard, efficient, and convenient manner, taking into consideration the conditions of the taxpayers’ application for the refund of VAT credit.　　XVI. This Announcement shall come into force with effect from April 1, 2022. The Announcement of the Ministry of Finance and the State Taxation Administration on Clarifying the Policies Regarding Period-End Value-Added Tax Credit Refund in Certain Advanced Manufacturing Industries(Announcement [2019] No. 84 of the Ministry of Finance and the State Taxation Administration), Article VI of the Announcement of the Ministry of Finance and the State Taxation Administration on Clarifying Value-Added Tax Policies Regarding the Lease of State-Owned Land and Other Matters(Announcement [2020] No. 2 of the Ministry of Finance and the State Taxation Administration) and the Announcement of the Ministry of Finance and the State Taxation Administration on Clarifying the Policies Regarding Period-End Value-Added Tax Credit Refund in Advanced Manufacturing Industries(Announcement [2021] No. 15 of the Ministry of Finance and the State Taxation Administration) shall be concurrently repealed.　　It is hereby announced.　　Ministry of Finance and State Taxation Administration　　March 21, 2022