SAT Clarifies VAT Issues Concerning Overdue Tax Payment Vouchers

SAT Clarifies VAT Issues Concerning Overdue Tax Payment VouchersOn December 29, the State Administration of Taxation (SAT) issued the “Announcement on Issues Concerning the Offset of Value-added Tax (VAT) using Overdue Tax Payment Vouchers (SAT Circular [2011] No. 78)” (the “Announcement”) to resolve the issue of the inability of general VAT payers to declare input VAT on time due to the occurrence of various objective circumstances.

According to the Announcement, taxpayers who are overdue in applying for the tax offset are permitted to apply to offset input VAT after examination and approval of tax authorities if actual transactions occurred and stipulated objective circumstances are met, and:

  • The VAT payment vouchers obtained by general VAT taxpayers have been certified or collected for information reporting;
  • The VAT payment vouchers obtained are consistent with verification results or general VAT taxpayers within the tax mentoring period, or those under the purview of the customs special import VAT payment letter “verification before offset” administrative measure.The VAT payment vouchers as referred to in the Announcement include VAT special invoices (including cargo transport VAT special invoices), customs special import VAT payment letters, and uniform invoices of the road and inland cargo transportation industry.

The object circumstances stipulated in the Announcement are:

  1. The occurrence of natural disasters, social emergencies and other force majeure events;
  2. Seizing or sequestrating of the taxpayer’s accounting books and materials by judicial or administrative agencies in the process of conducting business or inspection;
  3. Malfunction of the tax agency’s information system or network, resulting in the inability of the taxpayer to obtain the certification or verification results notification on time;
  4. The tax personnel of the enterprise suffer injury, death, sudden severe illness, or leave his/her post without notice or permission, without conducting handover of his/her work;
  5. Other circumstances stipulated by the SAT. The Circular is effective from January 1, 2012. Any overdue VAT payment vouchers obtained by VAT general taxpayers that are issued after January 1, 2007 and took place before the effective date of the Announcement can be used to apply for offsetting of VAT prior to June 30, 2012 in accordance with this Announcement.

For professional assistance in China contact Rosario Di Maggio at rosrio.dimaggio@dezshira.com or visit www.dezshira.com

Comments are closed

The Contributor

China Briefing hosts a wealth of business intelligence on legal, tax, and operational issues in China from a practical perspective. Knowledge, expertise and commentary for China Briefing is regularly contributed by Dezan Shira & Associates´ professional legal and tax staff. Currently located in Futian district, Dezan Shira & Associates has been assisting foreign companies in Shenzhen for 22 years.

    Connect with China Briefing:
  1. - Email: Click here

Have Your Say!

Where is your favorite holiday destination in SEA?

View Results

Loading ... Loading ...

  1. Etienne Ducrot: Hi, I’m interested to contact this Foundation. Do you know how? Thanks. Etienne
  2. Emma: Hi Jasmin, I’ve read your article about a new medical center opens in Nanshan at the end of this month....
  3. sherry lee: A simple story with great words…I love it.
  4. Evangeline: Awesome piece!
  5. Glenda: Hi there, I enjoy reading through your article post. I wanted to write a little comment to support you.