Export Tax Refund Guideline
The export tax refund policy applies to businesses engaged in export activities, primarily aimed at reducing costs and enhancing international competitiveness. Below are the types of companies eligible for export tax refunds and key points to note.
I. Eligible Company Types
1.Manufacturing Enterprises
Self-operated Exports: Companies that produce and directly export their own goods (e.g., factories in manufacturing industries).
Consignment Exports: Companies that entrust foreign trade agents to export their goods can still enjoy tax refunds.
Examples: Home appliance manufacturers, garment factories, machinery and equipment producers.
2.Foreign Trade Enterprises
Companies that purchase products from others (non-self-produced) and export them can claim tax refunds based on VAT special invoices.
Examples: Import-export trading companies, cross-border e-commerce businesses (B2B model).
3.Specific Service Providers
Companies providing cross-border zero-rated services (e.g., R&D, design, software services) may qualify for VAT exemption, credit, and refund.
4.Specific Service Providers
Enterprises in Special Zones
5.Other Special Entities
Overseas investment enterprises, foreign contracting project companies involved in goods exports.
II. Refund Conditions
1.Basic Requirements
Goods must be customs-cleared for export and foreign exchange received (with exceptions for special cases).
Goods must fall within the scope of VAT and consumption tax and have corresponding taxes paid.
Refund claims must be filed within the specified period (generally before April 30 of the year following export).
2.Exclusions
Processing trade with supplied materials (tax exemption but no refund).
Tax-exempt exports (e.g., contraceptive drugs, antique books).
Goods prohibited from export (e.g., certain resource-based products).
III. Refund Methods
1.Exemption, Credit, and Refund (ECR): Commonly used by manufacturers to offset domestic sales taxes before refunding the remaining amount.
2.Exemption and Refund: Foreign trade enterprises receive refunds directly based on input VAT invoices.
3.Exemption Without Refund: Applies to small-scale taxpayers or specific goods.
IV. Key Considerations
1.Compliance: Transactions must be genuine to avoid risks of fraudulent "fake exports."
2.Documentation: Required documents include customs declarations, invoices, and foreign exchange receipts.
3.Policy Updates: Refund rates and product catalogs may change (e.g., some machinery and electronics saw higher refund rates in 2023).