The basic meaning of export goods tax refund, or export tax rebate for short, refers to the refund of product tax, value-added tax, business tax and special consumption tax actually paid on export goods in domestic production and circulation. The tax refund system for export goods is an important part of a country’s taxation. Export tax rebate is mainly to balance the tax burden of domestic products by refunding the domestic tax paid on exported goods, so that domestic products can enter the international market at tax-free cost and compete with foreign products under the same conditions, thus enhancing the competitiveness and expanding export foreign exchange.
Export tax rebate conditions.
1. The goods must be within the scope of VAT and consumption tax
The scope of VAT and consumption tax includes all VAT-taxable goods except for tax-free agricultural products acquired directly from agricultural producers, as well as 11 categories of consumer goods listed for consumption tax such as cigarettes, wine and cosmetics.
The reason why this condition must be fulfilled is that the tax refund (exemption) for export goods can only refund or exempt the taxed amount and taxable amount of goods on which VAT and consumption tax have been levied. Goods not subject to VAT and consumption tax (including goods exempted by the state) cannot be refunded, so as to fully reflect the principle of “no refund before levy”.
2. Goods must be exported through customs clearance
The so-called export, that is, export customs, which includes self-owned exports and export agents entrusted two forms. Distinguish whether the goods are declared for export, is to determine whether the goods belong to the scope of tax refund (exemption) is one of the main criteria. All the goods sold in the country, do not declare their departure, unless otherwise specified, regardless of whether the export enterprises are settled in foreign currency or in RMB, and regardless of how the export enterprises in the financial processing, shall not be regarded as export goods to be refunded.
For the sale of goods in foreign currency, such as hotels, restaurants and other foreign exchange goods, etc., because they do not meet the export conditions for departure, can not be given a tax refund (exemption).
3. Must be in the financial export sales processing of goods
Export goods only in the financial sales process, can be handled for tax refund (exemption). In other words, the provisions of the export tax rebate (exemption) only applies to the export of trade goods, and non-trade export goods, such as donated gifts, personal purchases in the country and take the goods out of the country (unless otherwise specified), samples, exhibits, etc., because they are generally not in the financial sales process, so according to the current provisions can not be refunded (exemption) tax.
4. Must be goods that have been received and written off
According to the current regulations, export enterprises apply for tax refund (exemption) of export goods, must be received in foreign currency and by the foreign exchange administration of goods written off.
In general, export enterprises apply to the tax authorities for tax refund (exemption) of goods, must have the above four conditions at the same time. However, the production enterprises (including import and export enterprises, foreign trade enterprises entrusted with the export of production enterprises, foreign-invested enterprises, the same below) must add a condition when applying for tax refund (exemption) of export goods, that is, the goods applied for tax refund (exemption) must be the production of self-produced goods (foreign-invested enterprises by the provincial foreign trade and economic and trade departments approved the acquisition of exported goods, except).