The equipment procured by R&D organizations can be refunded and exempted from tax. Foreign-funded R&D centers are exempted from import taxes on imported science and technology development supplies, including import VAT, consumption tax and customs duty, and domestic and foreign-funded R&D institutions are entitled to a full refund of VAT on the procurement of domestically produced equipment.
Legal Objective:Article 13 of the Measures for the Administration of Value-added Tax Refund on Procurement of Domestic Equipment by Research and Development Institutions belonging to the general taxpayers of value-added tax R & D institutions declaring the tax refund on procurement of domestically produced equipment, and the competent tax authorities, upon examination and approval in conformity with the regulations, shall handle the tax refund in accordance with the regulations. If an R&D organization declares tax refund for procurement of domestically produced equipment, which belongs to one of the following cases, the competent tax authorities shall take the measures of sending letters of investigation or other ways of investigation to confirm that the value-added tax invoice is true and the equipment listed in the invoice has been declared for tax payment in accordance with the regulations, and then it can handle the refund of tax: (1) Doubtfulness is found in the audit, and doubtfulness can not be ruled out even after verification. (ii) General VAT taxpayers using ordinary VAT invoices to declare tax refund. (iii) Non-VAT general taxpayers declaring tax refund.