Payment of VAT for goods from China

Import of goods from China to Russia is a popular and growing practice among small, medium and large businesses. One of the key points when importing Chinese products VAT (Value Added Tax)It raises a lot of questions for entrepreneurs: who pays, how much and can it be returned?

This article will explain how VAT works when importing from China, what are the schemes, how to avoid mistakes and what to do to conduct business transparently and efficiently.

What is VAT on imports?

VAT on Imports is the duty-taxwhich border-pay when importing goods into Russia from countries outside the EAEU (China is one of these countries).

This tax pays. importer - that is, the legal entity or IP on which the cargo is issued.

Mechanism for calculating VAT on imports

Formula:

VAT = (customs value + duty + excise, if any) × VAT rate

Example:

• Customs value of goods: 1 000 000 rubles.
• Duty: 50,000 rubles.
• VAT rate: 20%

Calculation:

(1,000,000 + 50,000) x 20% = 210,000 rubles. VAT

Where and how VAT is paid

VAT paid when submitting a cargo customs declaration (GTE). The payment is made to the account of the FCS of the Russian Federation through the Unified Treasury Account system.

Ways:

• Through the bank (payment order),
• through a broker (if acting on behalf of the importer),
• Through an electronic system when using EDO.

Without paying VAT, the cargo will not be released into free circulation.

VAT rates

Who is entitled to a VAT refund?

If the company is registered in Russia and is VAT-payerShe might. deduction in the VAT declaration.

Conditions for reparation:

1. The company is registered in the tax as a VAT payer;
2. cargo declared to the company;
   
3. VAT is actually paid at customs;
4. There is a correct customs declaration indicating the amount of VAT;
5. There are invoices and documents confirming payment and receipt of goods.

Reimbursement is made in the quarter following the quarter of payment.

The main VAT payment schemes for imports from China

1. Direct delivery from the Chinese plant to the Russian company

• The company receives an invoice, pays for the goods, acts as a recipient.
• They pay duties and VAT on their own.
• VAT can be deducted.

The most transparent and safe scheme, especially for medium and large businesses.

2. Through a logistics company (agent scheme)

• The Russian company works under a contract with a logistician.
• The logistician arranges the cargo to his legal entity, and then transfers the goods to the client under a contract of sale or commission.

Important:

• In this scheme, VAT is paid by the logistician, and then includes it in the cost for the client.
• It is not always possible to deduct VAT.

3. Fragmentation of supply (import to individuals, without paying VAT)

• It is used for small volumes.
• Goods are imported in batches worth up to 200 euros and weighing up to 31 kg.

Risks:

• Bypass - not suitable for commercial delivery;
• Possible blockages and fines;
• VAT is not paid, but it is not refunded.

Common mistakes and risks

1. Incorrect value statement Understatement of customs value can lead to additional VAT, fines and criminal liability.
2. No invoice or GTD - no deduction.
3. Working with “cash” and gray schemes The risk of blocking accounts, tax audit.
4. Registration for a “technical” company - may interfere with the deduction of VAT.
5. Payment directly in yuan without contract It raises suspicions among tax authorities.

Examples in practice

Example 1:

Alfa company imports furniture worth 5 million rubles from China. She is registered on VAT, works with a white logistician, receives all the documents. After paying 1 million rubles, VAT includes it in the deduction and reduces the tax burden.

Example 2:

The company "Beta" orders smartphones through a cargo service, receives goods without documents. VAT is not paid officially - the tax has no reason to return VAT, checks are possible.

Tips for business

• Check the contractors Especially logistics and brokers.
• Work with white supplyEspecially with regular imports.
• Watch out for legislative changes For example, in 2023-2024, customs digitalization and marking are being actively introduced.
• Keep an archive of GTD, invoices, contracts and payments - to confirm deductions.
• When planning a purchase, include VAT in the cost calculation.

Payment of VAT on imports from China is an integral part of foreign economic activity. It requires competent calculation, proper registration of documents and clear interaction with customs authorities.

A transparent VAT payment scheme allows:

• avoid problems with the law,
• to make a tax deduction,
• Build a reliable logistics chain.

And when scaling the business is the basis of sustainable growth and trust on the part of counterparties.