Qualified R&D Institutions Eligible for Full VAT Refund on Purchase of Domestically-Produced Equipment

The State Taxation Administration (STA) recently issued an announcement on measures for the refund of value-added tax on the purchase of domestically-produced equipment by research and development (R&D) institutions (Announcement No. 6 [2020]). Relevant domestically-produced equipment purchased by qualified R&D institutions may claim VAT refund in accordance with the measures.  Regarding the specific conditions and scope of these qualified R&D institutions and the relevant domestically-produced equipment, the provisions stipulated in STA ’s Announcement No. 91 (2019) shall apply. In order to be eligible for VAT refund on the purchase of domestically-produced equipment, an R&D institution should go through VAT refund record-filing formalities at the competent tax office with the necessary documents when claiming tax refund for the first time. The filing time limit shall be the VAT filing period from the first day of the month after the purchase of the domestically-produced equipment (date as shown on the invoice) to 30 April of the following year.

Source: State Taxation Administration