As the spokesperson of the State Taxation Administration said on a press conference of the State Council Information Office (SCIO), in 2021, the taxation departments continued to optimize export tax rebate services and adopted new measures to improve the efficiency of export tax rebate processing. In 2021, China handled a total of 1.67 trillion yuan of export tax rebate, which effectively alleviated the financial pressure of enterprises.
source: www.scio.gov.cn
In 2022, the taxation departments along with the relevant departments will implement supportive measures to improve the convenience of export tax rebate, continue to support the development of cross-border e-commerce and other new forms and models of foreign trade, and further promote opening-up at a higher level.
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With the steady development of China's foreign trade industry, more and more enterprises start import and export business. Export tax rebate has become a topic that foreign trade enterprises have to pay attention to.
Now, HACOS takes you to know something about the export tax rebate policy in China.
What is Export Tax Rebate?
Export tax rebate refers to refunds of the value-added tax and the consumption tax paid for the commodities declared for export in the domestic production and distribution process.
Benefits of Export Tax Rebate
The export tax rebate policy shows that China encourages and boosts exports. Foreign trade enterprises that export goods can apply for tax rebates according to law, which helps enterprises increase the income and lighten the tax burden.
1.Get the tax rebates and subsidies from the government, and increase the profits of enterprises.
2.Gain export price advantage, enhance product competitiveness, and expand market share.
3.Avoid direct contact between foreign customers and factories.
4.Ensure the safety of funds for foreign exchange is in the enterprises’ bank accounts.
5.Export goods in accordance with the regulations.
Requirements for Export Tax Rebate
1. Has import and export rights.
2. Becomes a general taxpayer.
3. Hold foreign currency accounts.
4. Obtain real special VAT invoices.
5. Choose a professional accountant.
Recently, the tax departments investigated two cases of cheating the tax man for export tax rebates. Criminal gangs made some false VAT invoices and tricked the tax departments to get the export tax rebates.
The crime of cheating for export tax rebates has a bad effect on our society. It not only leads to the loss of tax in China, but also disturbs the normal economic order.
Enterprises that made false VAT invoices to evade tax will be punished in accordance with the law. All enterprises should caution themselves, understand the relevant regulations of export tax rebate, and apply for the tax rebate legally.
Since the materials and procedures required for export tax rebate are relatively complex, HACOS suggests that enterprises choose professional institutions to handle the export tax rebate, so as to help enterprises avoid tax risks and save worry and effort.
A Successful Case
A foreign client runs an international import and export company in China, which is engaged in export trade of international custom furniture. As the client was unfamiliar with China's tax laws, the company always used risky export methods in the past, which made the client uneasy.
After understanding the situation, HACOS patiently answered questions for the client, introduce and explain China's export tax rebate policy, and provided professional and safe plan for him. Finally, the client successfully got the tax rebates.
HACOS focuses on serving foreign-trade enterprises and has professional teams.
If you want to know more, please contact our consultants or leave your message.
