As an important part of the national economy, international trade is booming, and the significance of export tax rebate policy is also known by more and more export companies. Export tax rebate can not only promote the healthy development of the national economy, but also promote the sustainable development of foreign trade. In addition, it also has a very important regulatory role in my country’s market economy.
Under my country’s export tax rebate policy, if the goods have paid taxes in China, then the taxes can be refunded to the export company. In this way, my country’s products can enter the international market without taxes, which not only enhances the competitiveness of my country’s export goods in the international market, but also improves the economic benefits of export companies.
The handling of export tax rebates is contained in the whole process of goods export. From the export of goods to obtaining tax refunds (exemptions), export companies have to go through 10 steps in total, and they need to operate in various departments. Among them, the most important things to pay attention to are tax rebate registration, preparation of materials, and tax calculation.
1. Handle the tax rebate registration for export enterprises
Export tax rebate registration is a regulation in my country that export companies must go to the tax authorities for written registration after they have the right to operate exports. It generally includes registration, change, cancellation of registration and annual inspection, and is an indispensable process for all export enterprises in my country to handle export tax refunds.
Within 30 days from the date of filing and registering foreign trade operators or signing the first entrusted export agreement, the export company should prepare relevant materials and go to the tax authorities to handle the export tax refund (exemption) qualification certification. Only when the exporter is qualified for tax refund can it register for tax refund.
Before registering for export tax refund, the exporter should first examine whether its own enterprise meets the three basic conditions of operating export product business, holding a business license issued by the industrial and commercial administrative department, and having legal person status and implementing independent economic accounting. Only when the above conditions are met can it legally register and obtain export tax refund (exemption).
Generally speaking, tax refund registration is divided into the following three steps.
(1) Collect the export tax refund registration form after the relevant documents have been inspected.
(2) After collecting the form, fill it out and stamp it with the company seal as required, and submit it to the tax authorities together with the export product operation right and industrial and commercial registration certificate materials. If the tax authorities review it correctly, it means that the registration has been accepted.
(3) The tax authorities issue the export tax rebate registration certificate.
2. Prepare export tax rebate materials
Export tax rebate is a very important part of foreign trade. All exporters should pay attention to it. Whether or not the tax can be refunded (exempted) determines the benefits of foreign trade business to a certain extent. The processing of export tax rebates involves many units such as tax authorities, customs, foreign trade and economic departments, and foreign exchange management departments. The required documents are relatively complicated. Salesmen should prepare materials carefully during the processing to avoid delays in the tax rebate processing. The required materials are:
(1) Original customs declaration form.
(2) Original export goods invoice.
(3) Original export exchange verification form, and you can also provide a forward exchange registration certificate.
(4) Original value-added tax invoice.
(5) If there is an agency business, the export company also needs to provide an agency export goods certificate and the original agency agreement.
(6) Foreign trade enterprises’ import and export tax refund purchase details declaration form, foreign trade enterprises’ export tax refund export details declaration form, and foreign trade enterprises’ export tax refund summary declaration form.
(7) Electronic data generated in the export tax refund interim reporting software.
(8) Export goods sales details.
(9) Other required materials.
Salespersons should be careful and meticulous in handling export tax refunds and follow the prescribed sequence, i.e., apply for verification form online; go to the State Administration of Foreign Exchange to receive verification form; file verification form; enterprise submits form; online verification; log in to the tax refund system to verify invoice information and enter tax refund declaration data and generate declaration disk; bring required documents to the State Administration of Taxation for tax refund; file tax refund documents for export goods.
Salespersons should be familiar with the handling conditions, required materials, declaration process and precautions for export tax refunds. This will not only improve their own business capabilities, but also be a good opportunity to demonstrate their own value.
3. Tax refund calculation method
The specific calculation of tax refund is very important and is related to the revenue of foreign trade orders. There are two types of tax refund methods currently implemented in my country: one is “exemption, deduction and refund”; the other is “collection first and then refund”. The two methods are suitable for different conditions.
“Exemption, deduction and refund” is generally applicable to the value-added tax of self-produced goods (including entrusted export) exported by production enterprises with import and export rights. This method is based on the FOB price of exported goods, and its tax refund rate is consistent with the tax refund rate obtained by export enterprises.
“Exemption, deduction and refund” does not take the method of full tax refund for the tax refund of export goods. It implements the method of exempting the tax of the export link of export goods first, and then offsetting the tax payable for domestic sales goods. Finally, for the part of its tax payable that is not enough to offset the tax refund, it determines whether to refund the tax according to the proportion of the export sales of the production enterprise to the total sales of goods in the quarter.
The calculation formula for “exemption, deduction and refund” is: the amount of tax that is not exempted from deduction and refund for current export goods = the FOB price of current export goods x the RMB exchange rate x (tax rate – refund rate) – the taxable price of duty-free imported materials and parts written off by the current customs x (tax rate – refund rate).
“First levy and then refund” is generally more suitable for asset goods entrusted for export by production enterprises that do not have the right to import and export. “First levy and then refund” adopts the method of refunding the value-added tax and consumption tax levied as usual at the export stage for export goods with complete procedures. The refund is generally the responsibility of the national tax department in charge of export tax refunds.
The calculation of “collect first and refund later” is divided into the calculation of tax collection and the calculation of tax refund. The calculation formula of tax collection is: the output tax of exported goods = the FOB price of exported goods x the exchange rate of RMB x the tax rate, the current tax payable = the output tax of domestic sales goods + the output tax of exported goods – the input tax; the calculation formula of tax refund is: the refundable tax = the FOB price of exported goods x the exchange rate of RMB x the tax refund rate.
In the tax refund and exemption process, the same export goods can usually get different results after using different tax refund methods. Therefore, when choosing a tax refund method, you must consider it carefully and choose the one that is most beneficial to the company.