For factories that produce and export their own products, the tax refund method is slightly different. Because the products are their own, there is no need to issue VAT invoices for themselves. To facilitate operation, the state has stipulated a “free and deductible” system for tax refunds for self-operated import and export factories, that is, the factory is exempted from output tax, input tax deduction and input tax refund.
Output tax refers to the 17 yuan VAT that should be paid if a 100 yuan product is sold to a domestic company. Because it is exported directly by itself, this item is exempted. Input tax refers to the VAT that the factory has paid for the purchase of raw materials and labor and other expenses. According to regulations, it can be deducted from the output tax. Now that the output tax is exempted, there is no way to deduct it, so it is deducted from the output tax in other non-export businesses. If there is still no output tax to deduct, the tax bureau will directly refund it.
Assuming that the input tax is 8 yuan per product and there is no way to deduct it, the actual cost of the factory’s export is 100 yuan – 8 yuan = 92 yuan. The other FOB, CNF and CIF algorithms are the same as above.
Simply put, there are generally two ways of foreign trade, one is to produce and export by yourself, and the other is to purchase products for resale and export. For self-production and export, the tax refund can be obtained by exporting the export price x tax refund rate; for reselling purchased products, the tax refund is the pre-tax price x tax refund rate shown on the VAT invoice issued by the source of goods. It is not difficult to find that for the same export transaction, assuming an export price of 100,000 yuan, the pre-tax price is about 85,700 yuan, and the tax refund is calculated at 13%. The tax refund for self-operated production and export is 13,000 yuan, while the tax refund for purchase and export is 11,141 yuan, a difference of about 1,859 yuan. However, this is just a concept, not the result of actual actuarial calculation, because in actual operation, there will be some differences according to the specific conditions of different regions, different industries and even different enterprises, and the error is usually around 1%~2%. To calculate accurately, you need to have certain accounting and tax expertise. As a simple introductory textbook on foreign trade, I will not introduce it in detail here. Interested readers can find other professional books for research. After all, in actual transactions, an error of about 1% is still acceptable.
The experience derived from this is that companies that have import and export rights and have foreign trade company partners to act as export agents should pay attention to the same transaction. Exporting by themselves will earn about 1% more profit than asking an agent to export.
In addition to the above basic price composition, special attention should be paid to some hidden costs in actual operations.