Excess credit refund means returning the undeducted value-added tax at the end of the period to taxpayers; since 2019, my country has gradually established a system for incremental VAT credit refund. This year, we will continue to improve the VAT excess tax refund system, optimize the tax collection and refund process, and implement large-scale tax refunds for the excess tax credit. The end-of-period VAT refund policy expands to the following six major industries: transportation; manufacturing; scientific research; technical services; warehousing; and the postal industry. Analysis In recent years, my country has continued to promote value-added tax reform. Starting from April 1, the large-scale VAT refund policy will be implemented. This year, a notable feature of the VAT refund is that the scope has been expanded. In the past, the full incremental excess tax refund was mainly implemented for advanced manufacturing enterprises. This year, it has been extended to all small and micro enterprises and manufacturing, scientific research and technical service industries, and electricity, heat, gas and water production and supply industries. Enterprises in six major industries include software and information technology services, ecological protection and environmental management, transportation, warehousing and postal services. Which enterprises, small and micro enterprises, are eligible for the retained tax refund? For all qualified small and micro enterprises, the refund ratio of incremental retained tax credits will be increased from 60% to 100%, and all existing retained tax credits will be refunded in full before the end of June; focusing on supporting industries such as manufacturing, all remaining retained tax credits will be fully refunded on a monthly basis. The scope of refunding incremental retained tax credits will be expanded to include all manufacturing industries, as well as scientific research and technical services, electric power, heat, gas and water production and supply industries, and the existing retained tax credits in these industries will be refunded in one go before the end of this year.
What are the six major industries for retained tax refund?
1. The six major industries for retained tax refund refer to biopharmaceutical manufacturing, special equipment manufacturing, railways, ships, and aerospace. and other transportation equipment manufacturing, computer, communications and other electronic equipment manufacturing, instrumentation manufacturing, information transmission, software and information technology services.
2. Enterprises in the six major industries refer to enterprises whose main business is the above-mentioned industries, and whose main business income accounts for more than 50% of the total income of the enterprise in the year when their fixed assets are put into use.
3. Small and micro enterprises. For all eligible small and micro enterprises, the refund rate of incremental retained tax credits will be increased from 60% to 100%.
Legal basis: "Announcement of the Ministry of Finance and the State Administration of Taxation on Further Strengthening the Implementation of the End-of-Period Value-Added Tax Excess Credit Refund Policy" Article 5 Eligible small and micro enterprises (including individual industrial and commercial households) and "manufacturing industry" , scientific research and technical service industry, electricity, heat, gas and water production and supply industry, software and information technology service industry, ecological environment and environmental management industry, transportation, warehousing and postal industry" enterprises (including individual industrial and commercial households); "Wholesale and retail trade, agriculture, forestry, animal husbandry and fishery, accommodation and catering industry, residential services, repairs and other service industries, education, health and social work, culture, sports and entertainment industry" enterprises (including individual industrial and commercial households)