China News Service, October 10th. According to the website of the State Administration of Taxation, the State Administration of Taxation has recently issued the "Administrative Measures for the Exemption of Value-Added Tax and Consumption Tax on Off-island Duty Free Shops in Hainan's Outlying Islands."
The "Administrative Measures" clarify the scope of applicable outlying island duty-free shops, the management requirements for outlying island duty-free shops, the value-added tax of goods sold in outlying island duty-free shops, the management requirements for consumption tax, and the data transmission requirements for outlying island duty-free shops.
Data map: Tourists buy cosmetics at the duty-free shop of Riyue Square in Haikou.
Photo by China News Agency reporter Luo Yunfei
According to the deployment of the "Overall Plan for the Construction of Hainan Free Trade Port", Hainan's outlying island tax exemption policy has been further optimized and upgraded.
With the increase in the number of duty-free shops on outlying islands in Hainan, as well as the enrichment and increase in the types and quantities of duty-free goods on outlying islands, higher requirements have been put forward for the taxation departments to implement tax management for duty-free shops.
In order to promote the effect of Hainan’s outlying island tax exemption policy, promote the construction of Hainan’s international consumption center, further strengthen and improve the value-added tax and consumption tax management of Hainan outlying island duty-free shops, and improve the tax management system of duty-free shops, the Ministry of Commerce and Finance and the State Administration of Taxation have formulated the " Management Measures.
The “Administrative Measures” clarify that the scope of duty-free shops on outlying islands that are applicable to the “Administrative Measures” are those approved by the state (including those approved by the Hainan Provincial People’s Government in accordance with relevant regulations and filed with relevant ministries and commissions) that are eligible to implement Hainan’s outlying island duty-free policies shop.
Duty-free shops in outlying islands shall declare value-added tax and consumption tax on a monthly basis, and shall provide relevant materials to the competent tax authority when the first tax declaration is made.
If the basic situation of the operating entities of the outlying island duty-free shops changes, the relevant situation shall be reported to the competent tax authority.
The outlying island duty-free shops that have been approved by the state to carry out the outlying island duty-free business shall submit relevant materials to the competent tax authority.
The "Administrative Measures" require that outlying island duty-free shops sell outlying island duty-free goods, exempt from value-added tax and consumption tax.
In addition, sales of non-outlying island duty-free goods shall be subject to value-added tax and consumption tax in accordance with current regulations.
In addition, duty-free shops on outlying islands should make tax declarations, separate accounting, and issue value-added tax invoices as required.
An outlying island duty-free commodity business enterprise shall, in accordance with the requirements of the tax authority, send relevant information about the sale of outlying island duty-free commodities, information on outlying island passengers who purchase outlying island duty-free commodities and other information required by the tax authority through the reporting format or transmission method prescribed by the tax authority , Provide complete, accurate and real-time information to tax authorities.
The "Administrative Measures" shall come into effect on November 1, 2020.