Global Trade Localization for China
To enable you to fulfill the legal requirements of doing export business in China, the Global Trade solution has been localized to provide China-specific functions for obtaining tax refunds. Tax refund condition applies to China's domestic input VAT and consumption tax. After the exported goods physically leave Chinese territory, (except for those goods that are shipped to export processing zones) you can apply to the tax authorities for VAT and consumption tax refunds. The following conditions must be met:
The harmonized system codes of the goods are subject to VAT or consumption taxes by law
The transaction must a sales transaction instead of disposing fixed assets
Note
SAP Global Trade Localization is limited to general trading companies in China. It is also limited to goods that are purchased domestically in China, and exported to other countries.
By carrying out the tax refund process in your SAP system, you can generate the tax refund lists from Sales and Distribution and from Purchasing and request tax refunds for the applicable transactions. The system can upload inbound tax refund files from the tax authorities and generate the adjustment accounting documents in Financial Accounting (FI) if necessary.
By collecting the sales documents and the purchasing documents that are relevant for a global trade transaction, you can avoid unnecessary mistakes in the tax refund process.