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Sourcing Knowledge Center / Ask the Sourcing Experts / What is a VAT rebate and how does the system work in China?
Full Question
What is a VAT rebate and how does the system work in China?
Answer
Here is a blog post that explains the system in detail: What is VAT and why should I worry about it?
You may also find the following posts of interest:
Who gets the VAT rebate?
Why does my supplier fight a move from FOB to EXW terms? What role does VAT play?
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