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Hainan to better tax reporting system in duty free stores

 

HAIKOU, October 14. /TASS/. The Chinese authorities have ordered to improve the tax reporting system in duty free zones on Hainan, according to the ruling of the State Taxation Administration of China, regulating the payment of value added tax (VAT) and consumption tax by Hainan duty free shops.

In particular, according to the document, such shops in the province must declare VAT and consumption tax on a monthly basis. The products they sell, which are not included in the list of duty free goods established by the Chinese authorities, are subject to VAT and consumption tax. In duty free zones, separate accounting of sales of items from this list and goods not included in it is required. Sellers who do not keep separate records will not be exempt from paying duties. Duty free shops must issue a regular invoice, not a special VAT invoice. The regulation comes into force on November 1, 2020.

There are currently four duty free shops on the island: two of them are located in the provincial capital, Haikou, and the rest — in Sanya and the coastal town of Boao. Last week, the local authorities announced three more duty free shops will open in the province by the end of 2020 in Sanya. 

Duty free shops are part of the government's plan to promote international tourism in Hainan. By the end of this year, it is planned to open three more new duty free shops. The authorities explained the need to increase the number of duty free shops in the province by the growing number of tourists and the high demand for duty-free goods. All three new stores will be located in the resort town of Sanya. One of them will open at the airport, and the other two — in the suburbs. 

 


 



Hainan Provincial Bureau of International Economic Development

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