Issued by:    State Taxation Administration
Issue No.:    STA Announcement [2025] No. 20
Issue Date:    August 22, 2025
Effective Date:    September 1, 2025
Links:    https://shanghai.chinatax.gov.cn/zcfw/zcfgk/zzs/202508/t477460.html
To align with the latest end-of-period VAT credit-refund policy, the State Taxation Administration has issued a companion announcement on collection and administration procedures. Key points are as follows:
The refund must be claimed during the regular filing period of the month immediately following the month in which the taxpayer becomes eligible, and only after the monthly VAT return for that period has been submitted.
When calculating the input-tax composition ratio used to determine the refundable credit, input tax that has been reversed pursuant to the rules during the relevant period is not required to be subtracted from the input tax already deducted.
The tax authority must notify the taxpayer of its decision on the submitted VAT credit-refund application within the following time-limits:
1）For taxpayers rated A or B who have committed no tax-fraud or other offences in the past 36 months: within 10 working days from the date of acceptance.  
2）For taxpayers applying for both export “exemption, credit and refund” and a VAT credit refund: within 10 working days from the date on which the export refund amount is approved.
3）If, during the processing of a VAT credit-refund application, the tax authority finds that the taxpayer has an open tax audit or unresolved VAT-related risk indicators: the approval shall be suspended, and a decision will be rendered within 5 working days after the risk is subsequently removed.
4）Where the risk indicators involve grave VAT violations such as fraudulent export-tax refunds or the issuance of fake special VAT invoices: the credit-refund process shall be terminated, and a “Tax Matters Notice” informing the taxpayer of the termination shall be issued within 5 working days from the date the decision is made.