This section will explain in detail how to carry out export tax rebates from four aspects: in which cases can export tax rebates be applied, how to apply for export tax rebates, the three forms of export tax rebates, and the conditions that goods subject to export tax rebates should meet, so as to help e-commerce sellers avoid detours in the process of export tax rebates.
14.3.1 In which cases can export tax rebates be applied
Export tax rebates are the zero tax rate policy implemented by the state on export goods. The specific implementation method is that the state refunds or exempts the value-added tax and consumption tax that have been paid in accordance with the national tax law in the domestic production and circulation links of export goods.
Export tax rebates can guarantee the interests of our country and prevent export goods from being double taxed. In this way, when our goods enter the international market, the price will be relatively low, which can enhance the competitiveness of our products in the international market and expand export earnings.
Under normal circumstances, only the following types of goods can obtain export tax rebates from our tax authorities.
1. Goods within the scope of value-added tax and consumption tax
Our country’s export tax rebates require that the export goods are within the scope of value-added tax and consumption tax. The scope includes all VAT taxable goods and 11 categories of consumer goods such as tobacco, alcohol, and cosmetics that are subject to consumption tax, but does not include duty-free agricultural products purchased directly from agricultural producers.
my country’s export tax refund (exemption) policy has the characteristics of “no refund if not collected”, and only refunds the tax amount paid or exempts the tax amount payable for export goods that have been subject to VAT and consumption tax. Export goods that have not been subject to VAT and consumption tax cannot be refunded.
2. Customs declaration for departure of export goods
There are generally two ways to export goods, namely self-operated export and entrusted export. If goods want to apply for export tax refund, they must have been declared for departure for export. This is a rigid regulation of national policies and tax authorities on export tax refunds.
If goods are sold domestically but not declared for departure, no matter whether the exporter settles them in foreign currency or RMB, even if they are sold financially, they cannot be regarded as export goods for export tax refund (unless otherwise stipulated).
Special goods settled in foreign exchange, such as international hotels and restaurants, cannot be refunded (exempted) because their business process does not actually leave the country.
3. Goods that are treated as sales in finance
The export tax rebate policy generally only applies to trade export goods. For gifts, exhibits, samples, goods purchased by individuals to take out of the country (except as otherwise provided), mailings and other non-trade export goods, they are generally not treated as sales in finance, so they cannot be refunded (exempted) according to relevant regulations.
4. Goods that have been received and written off
According to relevant regulations of my country, only export goods that have been received and written off by the foreign exchange department can apply for export tax refund (exemption).
The state stipulates that the goods exported by foreign trade companies must be of the above four types to be eligible for tax refund (exemption). If a production company (a production company with import and export rights, a production company with foreign investment, or a production company that entrusts a foreign trade company to act as an export agent) applies for a tax refund (exemption) on goods, then one more item must be added, that is, the goods must be produced by the production company itself, or can be regarded as produced by itself, before they can apply for a tax refund (exemption).
If exporters want to obtain export tax rebates for exported goods, they must comply with the relevant regulations of the state tax authorities and ensure that the goods meet the above conditions before they can apply for export tax refunds (exemptions).
Foreign trade salesmen must remember the above types of goods. When paying taxes on goods, if the goods meet the above types, you should go through the tax refund (exemption) procedures in a timely manner to avoid overpaying taxes and causing losses to the company.