Since 1 June 2012, when applying for export rebate, if trading company cannot provide with official VAT invoice, but such VAT invoice has been verified and allowed by tax authority to deduct input VAT, tax authority can also process the application according to relevant tax rules.
Lee & Lee Associates Comments: To process the export rebate application under the circumstances that trading company cannot provide with official VAT invoice, tax authority mainly relies on internal information and photocopy VAT invoice submitted by trading company. Therefore, to avoid potential problems in applying for export rebate, trading company need remind the buyer and seller to promptly apply for VAT invoice verification and pay tax and properly file photocopy of VAT invoice.
Relevant Rule: Notice of the State Administration of Taxation on Issues Concerning on Handling Export Tax Refund for Foreign Trade Enterprise with Special Invoices for Value-added Tax (Announcement of SAT No. 22[2012]) effective 1 June 2012.
