How exactly is it calculated?

Per Article 37 of the "VAT Law" implemented in 2025,export tax refund calculation follows theExempt,Credit,and Refund (ECR)principle.Specific formula:

• RefundAmount=ExportGoodsFOBPrice×RefundRate
• Therefundratereferstothe"2025ExportCommodityCodesandTaxRefundRateTable"

Example (Clothing): Women’s coats with FOB price $50,000,refund rate 13%,Refundable amount = 50,000 × 6.8 (Exchange rate) × 13% = ￥44,200

What factors will affect the actual amount of tax refunds?

• Commodityclassification:HScodeaccuracydirectlyaffectstherefundrate
  • Example:Forceramicproducts,thetaxrebateratevariesbetween5%and13%dependingontheirintendeduse.
• Trade Mode:
  • Generaltradeallowsfulltaxrefunds
  • Processingtradeimplementsspecial"ECR"calculation
• : Handling cross - border foreign exchange receipts and payments,reporting to the State Administration of Foreign Exchange: A complete set is required.Voucher

What impact will the 2021 VAT reform have on tax refunds?

The implementation this year:Normalization of VAT credit refundsThe mechanism brings two major changes:

• Refundcycleshortenedtowithin20businessdays
• Thenewauthenticationprocessforelectronicspecialinvoices

Special note: Export of cross-border services can now enjoy a0% VAT rate (Zero-rated)policy,up 2 percentage points from 2023.

How to Avoid Common Errors in Tax Refund Filing?

• PrincipleofDocumentConsistency:
  • ErrorbetweendeclarationamountandVATinvoicemustbe5%
  • BillofLadingdatemustnotbelaterthantheCustomsDeclarationdate
• Time Node Control:
  • TaxrefundmustbecompletedbeforetheAprilVATfilingdeadlineoftheyearfollowingexport
  • Deadlineforforexcollectionextendedto12monthspost-export

Can professional agency companies increase tax refund amounts?

Legal agency services do not change refund rates but can optimize via:

• PreciseHScodeclassification(averagerefundrateincreaseof1-3%)
• Avoidingtaxlossescausedbydocumentflaws(approx.5%reductioninfilingrejections)
• Applyingtaxtreatiestoavoiddoubletaxation

Risks to Note when Choosing a Tax Refund Agent

• Bewareof"Guaranteedhigh-raterefunds"promises(mayinvolvetaxfraud)
• Verifytheagent’sCustomsAEOcertificationstatus
• ConfirmsystemintegrationcapabilitywithE-port