In accordance with ‘Announcement of the Ministry of Finance, the State Taxation Administration and the General Administration of Customs on Relevant Policies for Deepening the Value-Added Tax Reform’, starting from 1 April 2019, the policy on the refund of term-end excess input VAT credits shall be implemented on trial.

(1)	The ‘incremental excess input VAT credit’  stated in this announcement, refers to the term-end excess input VAT credit increased compared to the end of March 2019.
(2)	Starting from 1 April 2019, the policy on the refund of term-end excess input VAT credits shall be implemented on a trial basis.
(3)	If a taxpayer meets all the  following  conditions  (hereinafter referred to as “eligible for the refund of excess input tax credits”), it may apply to the competent tax authority for refund of the incremental excess input tax credit:
	(i)	The incremental excess input tax credit is more than zero for six consecutive months (two consecutive quarters if tax is paid on a quarterly basis) from the taxable period of April 2019, and the incremental excess input tax credit in the sixth month is not less than 500,000 yuan.
	(ii)	Its tax credit rating is Grade A or Grade B.
	(iii)	It has no  record of fraudulently obtaining the refund of any excess input  tax credit or  export tax refund, or falsely issuing a special VAT invoice within 36 months before applying for a tax refund.
	(iv)	It has not been  punished by a tax authority twice or more due to tax evasion within 36 months before applying for a tax refund.
	(v)	It does not enjoy the policies of refund upon payment and return (refund) after payment from April 1, 2019.
(4)	The incremental excess input tax credit refundable to a taxpayer in the current period shall be calculated under the following formula:
	Incremental excess input tax credit refundable = incremental excess input tax credit × input tax composition ratio ×60%

 

(1)	A ‘taxpayer in any of the advanced manufacturing industries’ means a taxpayer whose sales amount from producing and selling nonmetallic mineral products, general equipment, special equipment and computers, and communications and other electronic equipment in accordance with the Industrial Classification for National Economic Activities accounts for more than 50% of its total sales amount.
(2)	Beginning as of June 1, 2019, a taxpayer in any of the advanced manufacturing industries that meet all of the following conditions may apply to the competent tax authority for refund of the incremental excess input tax credit from July 2019 and the subsequent tax return filing periods:
	(i)	The incremental excess input tax credit is more than zero.
	(ii)	It has the tax credit rating of Grade A or Grade B.
	(iii)	It has no record of fraudulently  obtaining the refund of any excess input tax credit, or export tax refund, or falsely issuing a special VAT invoice within 36 months before applying for a tax refund.
	(iv)	It has not been punished by a tax authority twice or more due to tax evasion within 36 months before applying for a tax refund.
	(v)	It does not enjoy the policies of refund upon payment and return (refund) after payment from April 1, 2019.
(3)	The incremental excess input tax credit refundable to a taxpayer in the current period shall be calculated under the following formula:
	Incremental excess input tax credit refundable = incremental excess input tax credit × input tax composition ratio

Producers of key emergency supplies for epidemic prevention and control may apply for full amount refund of term-end excess input VAT credit on to competent tax authorities on a monthly basis.

The list of producers of key emergency supplies for epidemic prevention and control shall be determined by the development and reform department, industry and information department of provincial or upper level.