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When importing products into China, at what point can I get a VAT rebate on those products?

Posted: 2011-11-18

Full Question

I would like to import to China Espresso Making machines and Coffee from Italy. My main question that I would like to ask of you is that when the Import Duty and the VAT is paid during the importation process at what point if any can I get a VAT Rebate? I have been informed that I can get a VAT Rebate when the product is sold in the Chinese market, Is that correct?


You are correct that import duty and VAT is paid upon importation into China. I am afraid that whoever told you that you could get a VAT rebate when the products are sold in China did not give accurate advice. China is a big place and the laws change, so perhaps the person that gave you that advice knows something that I don't. The following is my understanding, but if your advisor knows different, please let me know, as I too would like to stay up-to-date.

As I understand it, the VAT rebate is applied for when goods leave China. For example, if you were a China-based legally registered entity (fully licensed to do trading and process VAT and based in China) and imported coffee and machines into China from your supplier in Italy, then sold the items to buyers outside of China, then MAYBE there could be some VAT rebate. But in the situation you describe above where you are selling to the China market for end use in China, there is no VAT rebate that I am aware of.

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