Three departments adjust local sharing mechanism of VAT rebate
Source: China Business News Release time: 2019-12-09
Recently, the Ministry of Finance, the State Administration of Taxation, and the People's Bank of China issued the "Notice on Adjusting and Improving the Local Sharing Mechanism and Budget Management of Value-added Tax Rebate Rebates" and decided that starting from September 1, 2019, 50% of the local share of VAT rebate refunds In part, 15% will be shared by the locality of the enterprise, and 35% will be shared by the local area according to the proportion of the value-added tax share in the total local share. The proportion is determined by the Ministry of Finance based on the actual share of VAT revenue in each region in the previous year.
The notice clearly states that in specific operations, 15% will be refunded directly by the province where the enterprise is located, and 35% will be advanced by the provincial financial department where the enterprise is located, and less than the amount due shall be adjusted monthly by the provincial financial department where the enterprise is located. For the central finance, advances to the central government finance are transferred to the provincial finance of the enterprise's locality on a monthly basis through the method of stock adjustment. Provincial financial departments in various regions should, in light of the fiscal system and financial status of sub-provincial provinces, rationally determine the sharing mechanism of sub-provincial tax credit rebates, improve efficiency, effectively reduce the pressure on grass-roots fiscal tax rebates, and ensure timely refund of tax rebates.
The notice also clarified related matters such as the establishment of relevant budget subjects, the handling of withdrawals from the warehouse, and the adjustment of fiscal storage, and required local supervisory bureaus of the Ministry of Finance to conduct supervision and management on the implementation of the tax rebate policy.