Ministry of Finance & State Taxation Administration: Announcement on Further Accelerating the Implementation Progress of Value-Added Tax Carryover Refund Policy

To further accelerate the release of red benefits from large-scale VAT carryover refund policies, the following policy announcement is hereby issued:

1. Advance the refund of carryover VAT amounts for large enterprises. The provision in Article 2, Paragraph 2 of Circular No. 14 of 2022 issued by the Ministry of Finance and the State Taxation Administration (hereinafter referred to as 'Circular No. 14 of 2022') stating that 'enterprises in manufacturing and other industries meeting specified conditions may apply for a one-time refund of their carryover VAT amounts starting from October 2022' is revised to read: 'enterprises in manufacturing and other industries meeting specified conditions may apply for a one-time refund of their carryover VAT amounts starting from June 2022'. On or before June 30, 2022, large enterprises’ carryover VAT amounts shall be centrally refunded based on voluntary applications by taxpayers.

2. All levels of finance and tax departments must firmly implement decisions and directives from the Central Committee of the Communist Party of China and the State Council, fully recognize the importance of implementing the large-scale carryover VAT refund policy, strictly follow Circular No. 14 of 2022, the Notice on Further Accelerating the Implementation Progress of the Value-Added Tax Carryover Refund Policy (Circular No. 17 of 2022, Ministry of Finance & State Taxation Administration), and this announcement’s requirements, continue to accelerate the refund process, intensify efforts to handle carryover VAT refunds for small and micro enterprises and individual businesses, strengthen support, and actively implement the policy of centrally refunding carryover VAT amounts for all eligible taxpayers before June 30, 2022. At the same time, strictly prevent refund risks and severely crack down on fraudulent refund practices to ensure that refunds are processed quickly, accurately, safely, and effectively.

Special announcement.

Ministry of Finance

State Taxation Administration

May 17, 2022