Export tax rebate refers to the refund of the value-added tax and consumption tax actually paid for export goods in domestic production and circulation. The export goods tax rebate system is an important part of a country ’s tax revenue. It is also a situation often encountered by foreign trade export enterprises. Let's take a look together.
Export tax refund (free of credit)
Export tax refund includes:
Export tax refund: The state refunds products exported in China, products that are produced and paid in circulation, business tax, etc. through the tax refund system to reduce product prices through tax refunds, reduce production tax burdens, submit international competitiveness, and achieve export earnings.
Export tax exemption: it refers to the direct export or entrusted export of goods produced or purchased by the enterprise. The state grants exemption from VAT and consumption tax.
Export tax credit: The input tax amount of the raw materials, parts, fuel, power, etc. consumed by the manufacturing enterprise to export the self-produced goods shall be refunded, and the taxable amount of the domestic sales goods shall be offset.
Export tax refund conditions
General conditions for tax-free goods
1. Must be goods within the scope of VAT and consumption tax
2. The goods must be exported for customs declaration and departure, and the goods exported to the export processing zone are also regarded as customs declaration for departure
3. The goods must be sold for sale in the financial market
4. It must be the goods that have received foreign exchange and have been written off
Export tax refund rate
The tax rebate rate changes every year, the time of change is uncertain, and the latest tax rebate rate changes can be tracked. You can check the tax rate at the China Export Tax Rebate Advisory Network. Generally, they are classified as different customs HS codes according to different parameters and properties of the goods. The tax rates for goods that enjoy tax refund range from 5%, 9%, 11%, 13%, 14%, and 17%. Products with a 0 tax refund rate will not make tax rebate or tax exemption.