A company engaged in import agency business wants to apply for a tax refund but does not know where to start or what materials and precautions are needed. The best answer points out that it is necessary to first confirm that the tax refund conditions are met, prepare materials such as import customs declaration forms, declare through the electronic tax bureau within the prescribed time, pay attention to the time nodes and the authenticity of the materials, and cooperate with the tax authorities for review after declaration.
What Documents Are Required for Transit Trade Tax Refund Application? A Comprehensive Guide!
Resolved
My company has recently become involved in transit trade, and I haven't handled tax refund applications in this area before, so I'm not entirely clear on what documents to prepare. I'd like to ask everyone, what specific documents are needed for a transit trade tax refund application? I'm concerned that incomplete documentation might affect the tax refund process, so I hope to receive a detailed and accurate reply. Thank you.
Trade Expert Insights Answers
Transit trade usually does not involve tax refunds. This is because transit trade refers to the buying and selling of goods between the country of production and the country of consumption not directly, but through a third country. The goods do not physically enter or exit the home country's customs territory and do not incur VAT or other turnover tax obligations within the home country; hence, there is no basis for a tax refund.
However, if there are special circumstances in the transit trade business model, for instance, if goods, despite being transited, undergo simple processing in the home country and incur VAT tax obligations, then an application for a tax refund would generally require preparing trade-related documents such as contracts, invoices, and packing lists to prove the transaction details of the goods. Customs declarations are also necessary; if goods enter or exit the home country's customs territory, a customs declaration is an important voucher. Furthermore, if processing is involved, processing cost accounting data may be required. Specific requirements still depend on the actual business operations and the demands of local tax authorities.
Generally, detailed trade contracts will be required, explicitly stating the rights and obligations of all parties, goods information, and transaction prices. Invoices are also indispensable, including commercial invoices, as they reflect the value of the goods.
The packing list is also very important. It records details of the goods' packaging, such as quantity and specifications, helping to understand the actual condition of the goods, and is a document that tax authorities may need to review during the tax refund application process.
If there are special circumstances regarding the goods' transportation, transportation documents, such as bills of lading, might also be useful as they can reflect the goods' transportation trajectory and prove the authenticity of the trade.
The company's own qualification documents, such as a copy of its business license, which prove its legitimate operation, are also documents that may be required when applying for a tax refund.
A tax registration certificate may be required to prove the company's compliant tax registration, as this is one of the foundational documents for tax authorities when processing tax refund applications.
Bank foreign exchange receipt and payment vouchers must also be prepared. They can prove the flow of funds and serve as strong evidence of trade authenticity, providing supplementary support for the tax refund application.
If goods inspection is involved, related inspection and quarantine reports might also be necessary to prove that the goods meet relevant quality and other requirements. Tax authorities may use these reports to determine if the goods qualify for a tax refund.
The company's financial statements may need to be prepared to review its financial status. This provides certain assistance in the overall assessment of the company's business during the tax refund review.