Why can't re - export trade be tax - refunded? Come and help me answer this!
Solved#Entrepot trade#
My company has recently been involved in re - export trade business and encountered questions in tax processing. I heard that re - export trade cannot be tax - refunded, but I don't know the specific reasons. Is it due to policy regulations or the nature of the business? I hope friends who know the ropes can talk in detail about what factors exactly prevent re - export trade from being tax - refunded. What impact will it have on the company that it cannot be tax - refunded?
Professional consultant answers
Robert ChenYears of service：6Customer Rating：5.0
Customer service consultantConsult
There are mainly two reasons why re - export trade cannot be tax - refunded. On the one hand, tax refund is a measure taken by the state to enhance the competitiveness of export commodities by refunding the value - added tax and consumption tax actually paid in the domestic production and circulation links when domestic goods are exported. However, the goods in re - export trade are not produced or processed domestically and no relevant taxes are paid in the country, so it does not meet the tax - refund basis. On the other hand, the goods in re - export trade do not actually enter or leave the country's customs territory, and the tax - refund policy is usually closely related to the actual export of goods and customs supervision. Lacking the key link of actual export, it is naturally impossible to handle tax refund. For the company, the inability to get a tax refund means an increase in costs and a compression of the profit margin. When making decisions on re - export trade, the company needs to fully consider this factor and reasonably plan the pricing and business model.
Sarah ZhangYears of service：8Customer Rating：5.0
Document expertConsult
The goods in re - export trade do not undergo substantial processing in the country and make no tax contribution in the domestic production link, so they cannot be tax - refunded. This is different from general export trade. General export goods are produced and processed domestically, pay taxes, and meet the tax - refund conditions.
James LiuYears of service：10Customer Rating：5.0
Foreign trade tax refund consultantConsult
From the perspective of customs supervision, the goods in re - export trade do not actually enter the country's customs territory, cannot be operated according to the normal export supervision process, and do not have complete export procedures, so tax refund cannot be applied for.
Joseph ZhouYears of service：10Customer Rating：5.0
Senior foreign trade managerConsult
Tax refund requires providing a lot of supporting documents, such as the export declaration form. The goods in re - export trade do not have the corresponding domestic export declaration form and do not meet the requirements for tax - refund materials, so they cannot be tax - refunded.
Andrew HuangYears of service：7Customer Rating：5.0
Supply chain optimization expertConsult
The source of goods in re - export trade is usually overseas, and there is no value - added link in the country. No domestic value - added tax, etc. is paid, which does not meet the basic conditions for tax refund.
Jennifer WangYears of service：4Customer Rating：5.0
Market development consultantConsult
The tax - refund system is to encourage the export of domestic products. The main body of re - export trade is not domestic products, so it is not within the scope of tax - refund support. The policy orientation is very clear.
Emily LiuYears of service：10Customer Rating：5.0
Settlement and payment expertConsult
The goods involved in re - export trade do not form a complete production and circulation chain in the country. Unlike general trade, there is no clear tax - payment and tax - refund process, so tax refund is not possible.
Elizabeth LiYears of service：3Customer Rating：5.0
Compliance and risk managerConsult
Because re - export trade does not involve domestic production, processing, and value - added, from the perspective of tax fairness, if tax refund is given, it will be unfair to domestic production enterprises, so there is no tax refund.
Amanda YangYears of service：3Customer Rating：5.0
Cost control consultantConsult
Re - export trade has no actual production link in the country, does not bear the domestic tax burden, and there is no theoretical basis for tax refund. The policy is also formulated based on this.
David LiYears of service：6Customer Rating：5.0
Senior customs declaration consultantConsult
Its goods do not actually enter or leave the country, and it is difficult for the customs to supervise and confirm. Lacking the true situation of goods export on which tax refund depends, tax refund is not possible.