【Now!China】SAT conducts stricter inspections on certificates

SAT conducts stricter inspections on customs payment certificates for import VAT

To curb economic crime and protect taxpayers’ rights, the State Administration of Taxation (SAT) has conducted stricter inspections on customs payment certificates for import VAT and managed customs import VAT deduction or credit more vigorously since 13 February 2017.

The new measures include ensuring that the enterprise name is entered correctly into the customs system and consistent with the tax registration record of the general VAT taxpayer for the import of goods.

In addition, SAT will compare payment information in customs payment certificates with customs registration records to check for consistency. It will also obtain paymentinformation from the customs system for deducting or crediting VAT of imported goods. If no discrepancies are found, the VAT listed in the customs payment certificate can be deemed as the input tax for the purpose of VAT deduction. Otherwise, the tax authority will seek to verify other information provided by the general VAT taxpayer.