Foreign Trade Export Tax Rebates: If You Can't Figure Out This Account, You May Suffer Big Losses!

The term "export tax rebates" may sound both familiar and unfamiliar to you. It's familiar because it often appears in discussions in the foreign trade industry, and unfamiliar because many people don't know exactly how to calculate it. Today, we'll lift the veil on this "mysterious" topic and tell you in the simplest way: How Exactly Are Foreign Trade Export Tax Rebates Calculated?

Export tax rebates, simply put, are the refunds of value-added tax, consumption tax and other taxes that enterprises have already paid in the production or circulation process by the state to encourage exports. For example, Mr. Zhang's company exported a batch of goods. When these goods were produced domestically, value-added tax had already been paid. Then after export, this part of the tax can be applied for refund.

The calculation of export tax rebates mainly involves two core elements: tax rebate rate and tax calculation base.

• Tax Rebate Rate: Issued by the State Administration of Taxation, the tax rebate rates of different commodities are different, generally ranging from 5% to 17%.
• Tax Calculation Base: Usually the FOB price (Free on Board) of the exported goods, that is, the price when the goods leave the Chinese port.

Although the formula is simple, the following points need to be noted in actual operations:

• The tax rebate rate may be adjusted, and policy changes need to be monitored at all times;
• The FOB price needs to be consistent with the actual customs declaration form to avoid tax rebate failures due to data discrepancies;
• Complete documents, including invoices, customs declaration forms, bills of lading, etc., need to be provided for tax rebate declarations.

Q: Can all exported commodities enjoy tax rebates?
A: No. Commodities prohibited from export by the state (such as some resource products) do not enjoy tax rebate policies.

Q: How long is the tax rebate cycle?
A: Usually 1-3 months, and the specific time depends on the review efficiency of the tax bureau and the completeness of enterprise information.

Export tax rebates are an important means for foreign trade enterprises to reduce costs and enhance competitiveness, but their calculation and declaration are not simple. After reading this article, do you have a clearer understanding of export tax rebates? Welcome to share your experiences or questions in the comment section, and let's discuss together how to make more efficient use of this policy!