Can re-export trade be refunded for taxes? Come and find out!
Solved#Entrepot trade#
Our company is recently considering developing re-export trade business. I heard that general trade can be refunded for taxes, so I'd like to ask whether re-export trade can also be refunded for taxes? If it can be refunded, what are the specific procedures and conditions? If it cannot be refunded, what are the reasons? I hope that professional people can help answer these questions, so that I can have a clearer understanding of the tax refund situation of re-export trade, enabling our company to better plan the business.
Professional consultant answers
Amanda YangYears of service：3Customer Rating：5.0
Cost control consultantConsult
Re-export trade usually cannot be refunded for taxes. The reason is that tax refunds are mainly for the situation where the goods of the exporting country actually leave the country and value-added tax has been paid in the domestic production and processing links. In re-export trade, the goods are not produced in the country, but are only transshipped from one country to another. The goods are not exported through customs declaration in the country, and the corresponding value-added tax and other turnover taxes have not been paid in the country, so it does not meet the tax refund conditions.
For example, Company A in the country purchases goods from Company B abroad, sells them directly to Company C abroad without domestic processing, and the goods are directly shipped from Company B to Company C. In this case, Company A cannot apply for tax refund.
However, there are also special cases. If the goods enter special supervision areas such as bonded areas and meet certain conditions, there may be a possibility of tax refund. However, this requires detailed consultation with the local tax and customs departments and judgment based on specific policies.
James LiuYears of service：10Customer Rating：5.0
Foreign trade tax refund consultantConsult
Re-export trade cannot be refunded for taxes because the goods have not really been processed and added value in the country and have not formed a complete domestic tax collection chain, so they cannot enjoy the tax refund policy.
William YangYears of service：5Customer Rating：5.0
International logistics consultantConsult
Re-export trade is different from general trade. Its goods do not enter the customs territory of the country and do not involve tax payment in the domestic production links, so it usually cannot be refunded for taxes.
Joseph ZhouYears of service：10Customer Rating：5.0
Senior foreign trade managerConsult
Generally speaking, re-export trade is not refunded for taxes because tax refunds require that the goods be declared and leave the country and there are payment vouchers for value-added tax of exported goods, and re-export trade can hardly meet these conditions.
Sarah ZhangYears of service：8Customer Rating：5.0
Document expertConsult
Re-export trade does not meet the requirements of the substantial export of goods to overseas and tax payment in the domestic production links, so it is not refunded for taxes under normal circumstances.
David LiYears of service：6Customer Rating：5.0
Senior customs declaration consultantConsult
Re-export trade has not been produced and processed in the country and the corresponding taxes have not been paid, which does not meet the basic logic of tax refund and cannot be refunded for taxes.
Michelle ChenYears of service：3Customer Rating：5.0
Business coordination consultantConsult
Since the goods in re-export trade are directly shipped from the exporting country to the importing country and do not involve domestic tax collection, it usually cannot be refunded for taxes.
Jennifer WangYears of service：4Customer Rating：5.0
Market development consultantConsult
The goods in re-export trade do not go through actual processing in the country and payment of domestic value-added tax. According to the tax refund regulations, it cannot be refunded for taxes.
Emily LiuYears of service：10Customer Rating：5.0
Settlement and payment expertConsult
The goods in re-export trade are not produced and taxed in the country, which does not meet the tax refund conditions, so it cannot be refunded for taxes.
Andrew HuangYears of service：7Customer Rating：5.0
Supply chain optimization expertConsult
Re-export trade does not meet the condition of "the goods are actually exported and have been taxed" for export tax refund, so it cannot be refunded for taxes.