A bonded warehouse is a type of warehouse you can sell products from without paying tax in China.
VAT refund
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If your products are shipped to the bonded warehouse, you can apply for a VAT refund. The amount of the refund is 9.1%.
When selling from Mainland China, you can refund VAT after the products are shipped to the bonded warehouse. You don’t need to pay the tax upon export.
If you sell from Hong Kong and are exempt from VAT, you can ship products to bonded warehouses without paying VAT.
Requirements for product supply to bonded warehouses
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The products are getting checked by the customs while shipping to the bonded warehouse. This reduces the delivery time.
If you don’t fulfill the requirements, the customs service won’t accept your supply.
Requirements for sellers:
- Your company business scope must include the right to engage in import and export trade.
- You must finish registration in the Customs Single Window system.
- Your company must be classified as a VAT payer in the general taxation system.
Requirements for supporting documents:
- For products that require export certificates or inspections, you must fulfill all the requirements and provide the necessary certificates.
- Supplied products must have special VAT invoices for input tax deduction.
- Supplied products must have all supporting documentation, including:
- invoices;
- packing lists;
- contracts and customs declaration drafts: you can request document templates from the warehouse customer service.
Requirements for sellers:
- Your company business scope must include the right to engage in import and export trade.
- You must finish registration in the Customs Single Window system.
- Your company must be classified as a VAT payer in the general taxation system.
Requirements for supporting documents:
- For products that require export certificates or inspections, you must fulfill all the requirements and provide the necessary certificates.
- Supplied products must have special VAT invoices for input tax deduction.
- Supplied products must have all supporting documentation, including:
- invoices;
- packing lists;
- contracts and customs declaration drafts: you can request document templates from the warehouse customer service.
- If you supply a branded product, you must provide a document that confirms your right to sell the brand.
Requirements for sellers:
- Your company business scope must include the right to engage in import and export trade.
- You must finish registration in the Customs Single Window system.
- Your company must be classified as a VAT payer in the general taxation system.
Requirements for supporting documents:
- For products that require export certificates or inspections, you must fulfill all the requirements and provide the necessary certificates.
- Supplied products must have special VAT invoices for input tax deduction.
- Supplied products must have all supporting documentation, including:
- invoices;
- packing lists;
- contracts and customs declaration drafts: you can request document templates from the warehouse customer service.
- Customs service of the bonded area must confirm that supplied products meet the requirements.
- You must provide a registration certificate for export tax refund or exemption. It must be issued by the tax office of the city where your company is registered.
- You must provide documentation for export tax refund as required by the tax authorities of your city. RETS confirms that the documentation meets the customs documents in the bonded area.
