The company is considering developing re-export trade business and wants to understand if re-export trade can enjoy export tax rebates and the relevant conditions. The best answer points out that re-export trade typically cannot enjoy export tax rebates because the goods are not substantially processed and produced domestically, nor are turnover taxes paid in China. For example, when Company A purchases goods from abroad and sells them abroad directly without domestic processing. However, if goods enter specific domestic zones before re-export, or if there are special tax rebate policies, it needs to be determined based on specific regulations.
Can Re-export Trade Really Qualify for Tax Rebates? Does Anyone Know?
Resolved
My company recently plans to start re-export trade operations, and I've heard that tax rebate issues are involved in the trade process. However, I'm not very clear about whether re-export trade can get tax rebates. I'd like to ask everyone, can re-export trade really qualify for tax rebates? If so, what conditions need to be met? If not, what are the reasons? I hope friends with knowledge in this area can help answer, thank you!
Trade Expert Insights Answers
Emma ZhaoYears of service：3Customer Rating：5.0
Export Documentation SpecialistStart a Chat
Re-export trade generally does not qualify for tax rebates. The reason is that tax rebates primarily target the export of domestic goods, where VAT (Value Added Tax) and other taxes have been paid during domestic production or procurement and are then refunded upon export. However, re-export trade goods are not produced domestically; they merely transit through the country, and while ownership of the goods transfers, no substantial processing or value-addition occurs domestically.
For example, if goods from Country A are to be transported to Country C, passing through our country, and our country's enterprise buys goods from Country A and then sells them to Country C, with the goods shipped directly from Country A to Country C without undergoing production or processing in our country, it therefore does not meet the conditions for a tax rebate.
However, if goods enter domestic bonded zones or other special customs supervision areas and are operated as deemed exports, under certain conditions, some cases may qualify for tax rebate policies. The specifics need to be determined in conjunction with local policies and actual business circumstances.
Michael ZhangYears of service：10Customer Rating：5.0
Customs Clearance SpecialistStart a Chat
Re-export trade does not get tax rebates because its nature differs from general export trade; there is no value-added stage generated domestically, and thus no domestic tax liabilities, so naturally, there is no concept of a tax rebate.
Daniel KimYears of service：4Customer Rating：5.0
Commodity Inspection and Quarantine ConsultantStart a Chat
If re-export trade could get tax rebates, it would be chaotic. It's essentially a middleman's transaction, and the goods don't even enter the domestic production system, so how could it qualify for a tax rebate?
Olivia LiuYears of service：6Customer Rating：5.0
Foreign Exchange Risk ManagerStart a Chat
Only goods produced, processed, and exported domestically are eligible for tax rebates. Re-export trade does not meet this condition, so it usually cannot get a rebate.
Kevin HuangYears of service：3Customer Rating：5.0
E-Commerce Export AdvisorStart a Chat
Re-export trade does not involve domestic production or manufacturing, and no domestic VAT or other taxes are paid. From the perspective of tax rebate principles, it does not meet the requirements for a tax rebate.
Anthony LuoYears of service：10Customer Rating：5.0
Trade Compliance ExpertStart a Chat
Tax rebates are not possible, as re-export trade goods have not been processed or value-added domestically and do not meet the conditions stipulated by our country for export tax rebates.
Robert TanYears of service：5Customer Rating：5.0
International Market Development AdvisorStart a Chat
Because re-export trade does not generate actual taxable activities domestically, it cannot get tax rebates. This is a basic tax rule.
Richard WuYears of service：8Customer Rating：5.0
Global Trade Operations ExpertStart a Chat
Re-export trade generally does not qualify for tax rebates, unless it is processed as a deemed export in special customs supervision areas and complies with local tax rebate policies.
Sophia WangYears of service：6Customer Rating：5.0
International Logistics CoordinatorStart a Chat
Normal re-export trade does not qualify for tax rebates, mainly because it does not fall under the category of goods produced domestically and then exported, and thus does not meet the basis for a tax rebate.
Thomas LiYears of service：7Customer Rating：5.0
Import Licensing AdvisorStart a Chat
Re-export trade goods are not produced domestically, so they generally cannot get tax rebates. This is determined by the nature of tax rebate policies.