Instructions on How to Fill Out VAT Refund Forms for Foreign Diplomatic
1. The VAT Refund Application Form for Diplomatic (Consular) Missions in China (Annex 1), the Consolidated Breakdown of VAT Refund Claims of Diplomatic (Consular) Missions in China (Annex 2) and the Itemised VAT Refund Claims of Diplomatic (Consular) Missions in China (Annex 3) are hereinafter respectively referred to as the Application Form, the Consolidated Breakdown and the Itemised Claims. Each and every item in the three forms must be filled out and numbers entered must be precise and accurate.
2. The Diplomatic (Consular) Missions in China shall enter their code on the Application Form. The code is the first three digits of the serial number of the Diplomatic Identity Card of their diplomatic staff.
3. The codes for different categories of VAT refundable goods and services are as follows:
B: Hot water
D: Coal gas
E: Natural Gas
G: Goods (with a VAT rate of 13%, e.g. grain, edible vegetable oil, books, newspapers and magazines etc.)
H: Other goods and services (with a VAT rate of 17%)
The Application Form shall be filled out according to these general categories.
4. Each purchaser shall fill out an Itemised Claims. All applying purchasers must be Eligible Beneficiaries referred to in the Measures for the Administration of Refund of Chinese Value-added Tax on Goods and Services Purchased by Foreign Diplomatic (Consular) Missions in China and Their Staff. In the case of purchases by a Diplomatic (Consular) Mission for official use, the Mission shall also fill out an Itemised Claims and indicate" For Mission's Official Use" in the "Purchaser's Name" entry. In the case of VAT refund claim by individual members of a Diplomatic (Consular) Mission, they shall enter their name and Diplomatic Identity Card or Identity Card (Consular Identity Card) number in columns where appropriate.
5. The Consolidated Breakdown shall be filled out in the order of the invoices for VAT refundable goods or services purchased by each Eligible Beneficiary. The relevant amount shall be calculated according to the following formulas:
(1) Water, hot water, electricity, coal gas, natural gas and heating:
Taxable Quantity = Actual amount of consumption or the exact floor space of heating service as indicated on invoices
Refundable VAT = Taxable quantity×Unit refund rate
Unit Refund Rate: To be determined by the competent tax authorities in accordance with the real selling price and applied VAT rate. The Protocol Department will announce the applicable unit refund rate for a given quarter on the official website of the Ministry of Foreign Affairs at www.fmprc.gov.cn so that the Eligible Beneficiaries may refer to it in calculating and claiming their VAT refund.
(2) Services and other goods:
Taxable Amount = Total sum (VAT included) of actually used building materials and equipment as indicated on ordinary invoices or in the Audit Report on the Final Accounts of Completed Capital Works Project ÷(1 + Applicable VAT rate)
Refundable VAT = Taxable amount ×Applicable VAT rate
6. Invoices produced by property management companies for the consumption of water, hot water, electricity, coal gas, natural gas or heating are acceptable for the purpose of VAT refund if they bear the appropriate seal of the local tax authorities and specify the exact amount of consumption, for example, the exact floor space of heating. Invoices for the purchase of other goods and services for VAT refund purposes must be ordinary invoices bearing the appropriate seal of the state tax authorities.
7. The original invoices must be submitted for examination and verification with each VAT refund claim and will be kept by the competent VAT refund authorities. If, under special circumstances, a Diplomatic (Consular) Mission has to retain an original invoice for justifiable reasons, the Mission shall submit the original invoice in question with its VAT refund application to the Protocol (Consular) Department of the Ministry of Foreign Affairs for examination and verification and, at the same time, provide a true copy of the invoice to the VAT refund authorities for record. The competent tax authorities will affix a seal of verification to the original invoice and return it to the Mission. The VAT refund applicants shall paste invoices to be kept by VAT refund authorities on an Submission Sheet for Invoices to be Kept by Tax Authorities (Annex 4) in the order of their entry in the Consolidated Breakdown. The original invoices to be returned shall be pasted to a Submission Sheet of Original Invoices to Be Returned (Annex 5), and compiled and kept together. The Mission concerned shall also provide a cover letter explaining the reason for their requested return and deliver it with the Sheet.
The Diplomatic (Consular) Missions are requested to make copies of the Submission Sheet for Invoices to be Kept by Tax Authorities and the Submission Sheet of Original Invoices to Be Returned for their own use. The number assigned by the Diplomatic (Consular) Mission to each invoice shall be clearly indicated on each Sheet and shall be consistent with the serial number as entered in the Consolidated Breakdown.
8. The Diplomatic and Consular Missions shall compile all the completed forms and related invoices and submit them together. Submissions of the Diplomatic Missions should be submitted to the Protocol Department and submissions of the Consular Missions should be submitted to the Consular Department.
9. All the forms shall be filled out in Chinese and shall be completed and printed in EXCEL format. The forms of standard format can be downloaded from the official website of the Ministry of Foreign Affairs. The completed Application Form and Consolidated Breakdown shall be saved on a 3.5-inch floppy disk. The disk shall be submitted with printed hard copies to the Protocol (Consular) Department. The name and the three-digit code of the Diplomatic Mission shall be noticeably indicated on the sticker of the disk.
10. All submissions to the Protocol (Consular) Department shall be compiled in the following order:
(1) The Application Form done in triplicate;
(2) The Consolidated Breakdown done in duplicate;
(3) The invoices to be kept by VAT refund authorities;
(4) The original invoices to be returned to the Diplomatic Mission;
(5) The Itemized Claims; and
(6) One 3.5-inch floppy disk
11. All submissions shall be delivered to the Protocol (Consular) Department in a standard (32cm×22.5cm) document envelop.
12. The Diplomatic Missions are kindly requested to submit their quarterly VAT refund claims and those of the Consular Missions of their country to the Protocol (Consular) Department no later than the tenth day of the first month of the following quarter. The VAT refund claims for goods and services purchased in the last ten days of a quarter may be made with those purchased in the following quarter.