Still worried about the import and export tax refund process? This article will help you master it all

For enterprises engaged in import and export business, import and export tax refunds are a crucial policy. Simply put, import and export tax refunds refer to a measure by which the state uses tax leverage to incentivize exports. It involves refunding the value-added tax and consumption tax actually paid on export goods during their domestic production and circulation, enabling domestic products to enter the international market at a tax-exclusive cost, competing with foreign products under equal conditions, thereby enhancing competitiveness and expanding foreign exchange earnings through exports. For example, Mr. Deng foreign trade company, by reasonably utilizing the import and export tax refund policy, effectively reduced product costs, making their prices more competitive in the international market.

Conditions for Applying for Import and Export Tax Refunds

Not all import and export enterprises are eligible for tax refunds; certain conditions must be met. Firstly, the goods must fall within the scope of value-added tax and consumption tax collection. These goods typically include all VAT-taxable goods except for tax-exempt agricultural products purchased directly from agricultural producers, as well as 11 categories of consumer goods subject to consumption tax, such as tobacco, alcohol, and cosmetics. Secondly, the goods must be declared to customs for export. Export, which means exiting the customs territory, includes two forms: self-managed export and authorized agent export. For an enterprise like Mr. Deng, the goods must physically leave the Chinese territory and be clearly recorded in customs declarations and other relevant documents. Finally, the enterprise must process the goods as export sales in its financial records, and have received foreign exchange and completed verification and write-off.

Detailed Import and Export Tax Refund Application Process

• Step 1: Tax Refund Eligibility Confirmation. After obtaining import and export operation rights, enterprises should proceed to the competent tax refund authority in their locality within 30 days to handle the export goods tax refund (exemption) eligibility confirmation procedures. They need to bring relevant documents, such as the registration form for foreign trade operators, the customs self-declaration unit registration certificate, and the VAT general taxpayer qualification certificate, etc., and fill out the export goods tax refund (exemption) eligibility confirmation form. After verification and approval, the tax refund authority will grant eligibility.
• Step 2: Invoice Authentication. After obtaining VAT special invoices, enterprises should authenticate them within 360 days from the date of issuance. Authentication methods include online authentication or visiting the tax service hall of the tax authority. Only authenticated invoices can serve as the basis for applying for tax refunds.
• Step 3: Customs Declaration for Export. When exporting goods, enterprises should truthfully fill in all details on the export goods customs declaration form and ensure consistency with the actual exported goods. The customs declaration form is one of the important documents for applying for tax refunds, and the accuracy of its information directly affects the progress of the tax refund.
• Step 4: Tax Refund Declaration. After the goods are exported and recorded as sales in the financial accounts according to accounting regulations, enterprises should declare for tax refunds with the competent tax refund authority within the specified declaration period. Relevant documents such as the export goods customs declaration form, export invoice, and VAT special invoice need to be provided during the declaration.
• Step 5: Review and Approval. After receiving the enterprise's tax refund declaration, the tax refund authority will review the submitted documents. The review includes the authenticity and legality of the documents, as well as the accuracy of the declared data. Upon successful review, approval will proceed according to established procedures.
• Step 6: Tax Refund Receipt. After approval, the tax refund will be returned to the enterprise according to the specified time and method. Enterprises can reasonably arrange the use of tax refund funds based on their own needs.

Key Considerations for Import and Export Tax Refunds

During the import and export tax refund process, enterprises need to pay attention to several key considerations. On one hand, strict adherence to the declaration deadline is crucial, as overdue declarations may result in the inability to enjoy the tax refund policy. On the other hand, ensuring the authenticity and completeness of declared documents is essential to avoid tax refund risks arising from documentation issues. Providing false documents will not only prevent obtaining a tax refund but may also lead to penalties from the tax authorities.

The import and export tax refund policy provides strong support for enterprises in international market competition. Enterprises should thoroughly understand the application process and relevant regulations, operate compliantly, fully enjoy the policy benefits, and promote the healthy development of their businesses. It is hoped that all enterprise operators will value and make good use of this policy to achieve better results in their import and export businesses.