China released 2022 new policy on renewable resources VAT

1.General VAT taxpayers engaged in the recycling of renewable resources can choose to apply the simplified tax calculation method to calculate and pay the value-added tax at the rate of 3%, or apply the general tax calculation method to calculate and pay the value-added tax.

2.General VAT taxpayers who sell self-produced comprehensive resource utilization products and provide comprehensive resource utilization services can enjoy the VAT refund policy.

The tax rebate policies related to the waste plastics industry are as follows:

3.7 Waste plastics and waste plastic composite materials: 70% tax rebate;

For recycled PET flakes and pellets, rPET products,enterprises need to meet the following conditions:

  1.More than 70% of the raw materials of the product come from the listed resources;

  2.The impurity content of rPET materials for Chemical Fiber, is less than 0.5mg/g and the moisture content is less than 1%, and the mass fraction of acetaldehyde of recycled PET resin for bottles is less than or equal to1μg/g;

  3.Taxpayers must pass ISO9000, ISO14000 certification;

 4.The annual waste plastic processing capacity of PET recycled bottle flake enterprises should be not less than 20,000 tons;

  5.The annual waste plastic processing capacity of plastic recycling and granulation enterprises should be not less than 3,000 tons;

 6.The comprehensive power consumption of the production of plastic recycling processing is less than 500 kWh/ton of waste plastic;

 7.The comprehensive fresh water consumption of PET recycled bottle flake enterprises and waste plastic crushing, cleaning and sorting enterprises is lower than 15 tons/ton of waste plastics. The comprehensive fresh water consumption of Plastic recycling granulation enterprises is less than 0.2 t/t waste plastic.

3.8 Waste agricultural film: 100% tax rebate rate;

3.11 Waste natural fibers and their products, chemical fibers and their products, various waste fiber mixtures and their products: 70% tax rebate.

For Recycled Polyester staple fiber and filament，enterprises need to meet the following conditions:

1.The raw materials for recycled polyester products are 100% from the listed resources；

2.More than 70% of the raw materials for other products come from the listed resources