Please pay attention! Four "minefields" of export enterprises

Date of issue:2019-05-19 18:20
Invoice management is not standard

Usually, tax fraud enterprises to carry out export tax fraud, often need to get a fake VAT invoice. Therefore, the investigation and punishment of fraud is a necessary link for tax authorities to realize the full chain of tax fraud.
Invoice management is not standardized, which brings great negative impact to export enterprises. If the export enterprise maliciously opens the tax fraud, will face the fine, stops the export drawback right and so on the penalty; If there are two tax-related violations, the goods, services and services exported by the company will face the legal consequences of not applying the tax exemption policy.
Not only that, if the upstream suppliers are listed as abnormal households or go missing, foreign trade enterprises obtained VAT invoices, will also be listed as out of control invoices or abnormal vouchers. This is likely to lead to foreign trade enterprises can not declare tax rebates, bringing risks to the enterprise.

Lack of capacity, suspected of false

    If the supplier of the production enterprise or foreign trade enterprise is identified as "insufficient capacity" by the tax authority, the production enterprise shall export its own goods, or the foreign trade enterprise shall purchase goods from the upstream supplier in the name of self-operation and export, it will not be able to handle the export tax refund, and may even need to be regarded as domestic sales and pay VAT.
A production enterprise exporting its own goods, or a foreign trade enterprise purchasing goods from an upstream supplier and exporting them in its own name, will often encounter a letter from the tax authorities. If a production enterprise or a foreign trade enterprise's supplier is found to be unable to produce the goods it exports, that is to say, the production enterprise or the supplier is found by the tax authority to be "insufficient capacity", the production enterprise and the foreign trade enterprise are likely to face false suspicion. Below this kind of circumstance, the goods that the enterprise exports cannot handle export drawback very likely, need to regard as domestic sale even, pay value added tax.
Under such circumstances, it is particularly critical for export enterprises, especially foreign trade enterprises, to choose suppliers carefully, check their production capacity, and pay attention to the dynamic tracking of the transaction process.

Failure to perform compliance review obligations

   Foreign trade garment enterprises shall perform the obligation of compliance review in accordance with the provisions. If the tax refund agent of export business occurred in violation of tax laws and regulations, foreign trade service enterprises or will face the corresponding penalty tax authorities. As a new form of China's trade, foreign trade garment has been supported by national policies. Notice no. 35 of the state administration of taxation of 2017 clarifies the business essence of the "agency" service of foreign trade comprehensive services and the subject of export tax rebate liability. At the same time, the above announcement stipulates that foreign trade garment enterprises should establish the internal risk control system of tax refund agency, and perform the responsibility of internal risk control of tax refund agency, and strictly examine and verify the production and operation status, production capacity and authenticity of export business of the manufacturer entrusted with tax refund agency. If the tax refund agent of export business occurred in violation of tax laws and regulations, foreign trade service enterprises or will face the corresponding penalty tax authorities.

Documents filed false or incomplete

Many export enterprises often do not attach importance to the filing of documents and the archiving management of export documents, and do not fully understand the provisions on the filing of export tax refund documents, which leads to the false or incomplete filing documents, tax authorities recover and overdue fines.
Export goods according to the ministry of finance, state administration of taxation on labor value added tax and consumption tax policy notice (caishui [2012] no. 39) and the state administration of taxation announced 24 in 2012 (the state administration of taxation announced 24, 2012), such as the regulation of tax regulatory documents, export enterprises shall, in the declaration for export refund (exemption) within 15 days after tax, the purchase contract, export cargo shipping, export goods transport documents, according to the declaration of tax refund (exemption) of exported goods order, fill in the catalog of export goods for filing documents, indicating the location for the record documents, in case to the competent tax authorities for verification.

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