Understand the Process of Export Tax Rebate in One Article, a Must-Read for Enterprises!

On the grand stage of global trade, export tax rebate is like a crucial policy "sharp weapon", having a profound impact on the export competitiveness of enterprises. Briefly speaking, export tax rebate refers to the value-added tax and consumption tax paid in accordance with the tax laws in various domestic production and circulation links for the goods declared for export, which are refunded by the state to enhance the competitiveness of domestic goods in the international market. This means that after enterprises export goods, part of the taxes already paid can "flow back", greatly relieving the financial pressure on enterprises.

For example, a clothing manufacturing enterprise has paid corresponding taxes in links such as raw material procurement and production processing. When this batch of clothing is exported, under eligible circumstances, the enterprise can apply for export tax rebate to get the funds back for the enterprise's further development.

First, enterprises with the right to engage in foreign trade exports and bearing the task of earning foreign exchange for the country. Approved by the economic and trade administrative departments, central and local foreign trade enterprises, industrial and trade companies, and some industrial production enterprises that enjoy the independent right to engage in foreign trade exports are all included. Second, enterprises that entrust exports. Even if they do not have the right to engage in exports themselves, by entrusting enterprises with the right to engage in exports to export goods, they may also meet the tax rebate conditions. Third, specific enterprises, such as ocean liner supply companies, ocean shipping supply companies, etc., can also handle export tax rebates under specific business scenarios.

• The goods must be within the scope of value-added tax and consumption tax collection. The collection scope of these two types of taxes includes all value-added tax taxable goods except the tax-exempt agricultural products directly purchased from agricultural producers, as well as 11 types of consumer goods such as cigarettes, wine, and cosmetics on which consumption tax is levied.
• The goods must be those that have been declared and left the country for export. The so-called export means exporting through the customs, which includes two forms: self-operated export and entrusted agency export. Distinguishing whether the goods have been declared and left the country for export is one of the main criteria for determining whether the goods belong to the tax rebate scope.
• The goods must be those that have been treated as export sales in financial terms. Only after the export goods have been treated as export sales in financial terms can tax rebates be handled.
• The goods must be those that have already received foreign exchange and have been verified. According to the current regulations, the export goods for which export enterprises apply for tax rebates must be those that have already received foreign exchange and have been verified by the foreign exchange management department.

First step, enterprises need to carry out qualification filing. Log in to the e-tax bureau, fill in relevant information in the "Export Tax Rebate Management" module, upload materials such as the business license and the Registration Form of Foreign Trade Operators for Filing, and complete the export tax rebate filing.

Second step, after the goods are exported, enterprises should promptly obtain the electronic information of the export goods declaration form and carry out operations such as the authentication of special value-added tax invoices. Then, enter the export tax rebate declaration data through the export tax rebate declaration system to generate the declaration electronic data.

Third step, formally declare the generated declaration data through the e-tax bureau or other designated channels. After receiving the declaration, the tax authorities will conduct an audit. If problems are found during the audit process, enterprises need to supplement or correct the materials in a timely manner according to the requirements.

Fourth step, after the audit is passed by the tax authorities, enterprises can wait for the tax rebate to be credited to the account. The tax rebate will be directly transferred to the bank account filled in by the enterprise during filing.

The sense of time is of crucial importance. Enterprises should make tax rebate declarations within the prescribed time. For example, within each value-added tax declaration period from the next month after the date of customs declaration of goods export to April 30 of the following year, collect all the vouchers to declare export tax rebates (exemptions). In addition, the authenticity and integrity of the materials should not be underestimated. The declaration forms, invoices and other materials provided by enterprises must be true and valid. Otherwise, not only will the tax rebate application be rejected, but the enterprise may also face tax penalties.

The export tax rebate policy is not unchangeable. Enterprises should always pay attention to the policy dynamics and adjust their tax rebate declaration strategies in a timely manner.

Although the process of handling export tax rebates is relatively complex, as long as enterprises fully understand the policy and strictly follow the process, they can smoothly enjoy this policy dividend and take more stable steps in the international market.