key information on trade WOFE Operation in Shanghai（To_General tax payer）
If you want to do import and export business after your trading company established, please pay attention to the following issues in order to ensure the smooth operation of your business in China.
1. Please check whether the related import and export licenses is ready?
1）Custom Registration Certificate
2）E-port ( two IC cards )
3）Entry-Exit Inspection and Quarantine Company Registration Form
4）Foreign Trade Registration Form
5）Qualification of General Tax Payer
6）Qualification of Export rebates （normally you can only get it after having first export business.）
2. Whether the bank trade accounts is ready?
Trade company need to open foreign currency trade account of trade payment transaction when doing import and export business. Specific currency type is based on your own business needs and please contact your bank for detailed opening process.
Here is the basic requirements of opening a foreign currency trade account:
1）Certificate of Approval in original ;
2）Business License, the bigger one in original;
3）Legal representative’s passport or ID card in original;
4）Company chop, legal representative chop and finance chop;
5）Original ID card of the person in charge for bank account opening.
3. Requirement on generating VAT invoice
1）As a trading company, the goods purchased in has no change during the process of purchase and sale. So the product name of the input VAT invoice (from suppliers) and all relevant information must be consistent with the output VAT invoice (sales from your WOFE/ trade company).
2）Related to the storage of the warehouse, company must keep storage list, warehouse-in sheet and warehouse-out sheet, logistics contact and delivery invoice as well.
3）Products must be purchased in first, then sold out.
Under special circumstances of vendor’s late invoice, please be sure to get input invoice and issue output invoice in the same month, which could avoid unnecessary trouble during the follow-up audit.
4. For import business, please note the following documents is required for accountant bookkeeping:
1) Customs declaration form for import
2) Invoice for import goods
3) Import Customs tax bill
4) Import purchase contract
5) Payment proof of imported goods
5. Two situations of exporting business
A. Using our service for export tax rebates application, please provide following material to accountant:
1）Export goods contract (with stamp duty on it);
2）Customs declaration form for export;
3）Export Proforma invoice;
5）Packing list of export goods;
6）Input Professional VAT Invoices generated by supplier;
8）Sales contract copy;
9）Bank receipt for the payment of exported goods;
10）Other documents according to actual situation.
B. If you do the export tax rebates application by yourselves, please provide following material to accountant for book-keeping purpose
1）Input Professional VAT Invoices generated by supplier;
2）Export Proforma invoice;
3）Customs declaration form for export, copy
4）Export goods contract (with stamp duty on it), purchasing order, packing list, copy;
6）Rebate summary declaration form of tax rebate
7）Purchase details declaration form of tax rebate
8）Export detail declaration form of tax rebate
9）Input Professional VAT Invoices generated by supplier;
10）Purchase contract, copy
6. Kind reminder for normal export rebates (special product excluded)
1）Shanghai tax system upgraded in May 2015, export rebate can only be applied 2 months after the invoice verified. Otherwise, tax authority will not accept the application.
2）All information on input VAT invoice must be consistent with export documents.
3）The issuing date of input VAT invoice must be earlier than the date of exporting.
4）The export tax rebate could only be operated between 1st to 15th day of each month.
5）The export tax rebate of last year must be proceed and ended before April 30th of the following year, overdue application will not be accepted.
6）The input VAT invoice shall be certified in tax system within 180 days since date of issue, otherwise it cannot be used for tax deduction.
7）After export tax rebate application, the amount of tax rebate is usually available within 2 months.
7. Export rebates of special product
1) For export tax rebate product with zero/ 0 % tax rebate rate, company need to pay 17% VAT which is regarded as domestic sales.
2) If company cannot provide normal input VAT invoice for exported product, company need to pay17% VAT, which is regarded as domestic sales.
3) Because of the existing regulations, the implementation of the export rebate paperless operation, paper materials is no longer needed when apply for export tax refund formalities. But company still need to file all the related docs for future tax bureau’s audit or temporary checking.
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