State Administration of Taxation, Circular on Issues Relevant to Set-off of the Amount of Value-added Tax on Purchases in Connection with Imports of Taxpayers

Issued: March 22 2007

Main Contents: The lawful tax payment certificates obtained from customs by taxpayers for imports are the sole basis for calculating the amount of value-added tax on purchases. The price differential and the money returned or refunded from overseas suppliers shall not be transferred out as a tax amount on purchases.