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Is the export tax refund policy for export goods of different types of foreign trade enterprises still in effect in 2026?
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I am the head of a foreign trade enterprise mainly engaged in the export of industrial automation equipment based in Shanghai. I have been in this industry for nearly 12 years. In the past six months, the combination of rising raw material prices and exchange rate fluctuations has compressed our profit to only 3%, and our cash flow is entirely supported by export tax refund. I just shipped a batch of goods worth 4.2 million RMB to Hamburg Port last week. Today I heard from peers that the export tax refund policy will be adjusted in 2026, and tax refund may be canceled for some mechanical and electrical categories. Some enterprises even had their tax refund applications rejected due to incomplete documents, and were required to repay the previously received tax refund. I am really anxious now. On one hand, I worry whether the tax refund for this shipped batch can be credited normally. On the other hand, I am afraid that subsequent orders to the EU can no longer enjoy tax refund preferences. What's worse, I worry that I will step on the compliance red line without mastering the requirements of the new policy. I want to ask immediately: Is export tax refund still available now? What are the specific requirements for mechanical and electrical export enterprises like ours?
Cindy ChenYears of service：3Customer Rating：5.0
Key Account ManagerStart a Chat
The export tax refund policy will still be implemented normally in 2026，with no full cancellation or large-scale tightening. The tax refund rate is only lowered or canceled for some high-energy-consuming，low value-added product categories，and the maximum 13% tax refund rate is still maintained for high value-added mechanical and electrical products such as industrial automation equipment.
For mechanical and electrical export enterprises like yours，you need to focus on three core implementation requirements: First，ensure that the product name，specification and quantity on the VAT special invoice，export goods customs declaration and bill of lading are completely consistent，second，complete the upload of pre-declaration documents for export tax refund within 30 days after the goods depart from the port，to avoid triggering tax audit warning due to overdue，third，foreign exchange collection must be completed within 180 days after the goods are declared for export，and you need to apply for an extension to the tax authority in advance if there are special circumstances.
In terms of operation，it is recommended to pre-verify documents through the "Intelligent Pre-audit for Export Tax Refund" module of the electronic tax bureau. If there are problems such as inconsistent product names，you can apply for modification before the customs clearance of the declaration form to avoid subsequent rejection. In terms of compliance red lines，it is strictly forbidden to apply for tax refund by forging documents or fabricating trade background. Once verified，not only the already refunded tax will be recovered，but also your enterprise will be listed on the tax dishonesty list，which will affect the handling of all subsequent foreign trade businesses.
Evelyn LiYears of service：3Customer Rating：5.0
Cross-border Compliance SupervisorStart a Chat
The core prerequisite of export tax refund is that the goods have completed compliant customs declaration. In 2026, the customs has added the "product traceability code" filling requirement for export customs declaration of mechanical and electrical products. If the corresponding traceability code is not filled in the customs declaration, the tax authority will not accept the tax refund application. In addition, if the transaction term on the customs declaration is CIF, you need to deduct miscellaneous expenses such as freight and insurance when declaring tax refund, and only take FOB price as the tax basis for tax refund. If you fail to deduct accurately, it will trigger the price review and recheck of the tax authority, resulting in the suspension of your tax refund application, with a maximum delay of 60 days. For the goods already shipped to Hamburg Port, you can log in to the international trade single window to check the filling status of the traceability code on the customs declaration. If it is not filled, you can apply for modification of the customs declaration before the goods arrive at the port to avoid affecting the subsequent tax refund.
Daniel XuYears of service：10Customer Rating：5.0
Director of Import & Export OperationsStart a Chat
The VAT deferral policy implemented by the EU for non-EU enterprises in 2026 can form a benefit hedge with domestic export tax refund. For your mechanical and electrical products exported to the EU, you can choose to apply for VAT deferral in the importing country, no need to prepay VAT at the import link, and you can still normally apply for the 13% export tax refund in China. It should be noted that the application for VAT deferral requires the Export Goods Tax Refund (Exemption) Filing Form issued by the domestic tax authority, and you need to ensure that the value and quantity of goods declared for VAT in the importing country are consistent with those declared for domestic tax refund, to avoid triggering cross-border tax inspection due to data differences. In addition, if your enterprise has cross-border related party transactions, you need to ensure that the related party transaction pricing conforms to the arm's length principle, otherwise the tax authority will question the authenticity of your tax refund application and require you to repay the tax refund plus late payment surcharge.
Victor SunYears of service：5Customer Rating：5.0
Trade Risk Control ManagerStart a Chat
The foreign exchange collection requirements for export tax refund in 2026 are further clarified. The foreign exchange collection for mechanical and electrical product exports must be processed through formal cross-border payment channels. If you use an offshore account for foreign exchange collection, you need to provide the bank statement of the offshore account, foreign exchange collection description and corresponding trade contract to prove that the collected funds are directly related to the export goods. For the 4.2 million RMB worth of goods you have shipped, you need to complete the foreign exchange collection within 180 days after the goods are declared for export. If you cannot collect the foreign exchange on time due to capital turnover problems of your EU client, you need to submit the Application Form for Deferred Declaration of Foreign Exchange Collection for Export Goods to the tax authority in advance, and provide the client's capital difficulty certification materials, otherwise your tax refund application will be marked as abnormal, and can only be re-audited after you complete the foreign exchange collection. In addition, the foreign exchange collection currency must be consistent with the pricing currency marked on the customs declaration. If there is currency conversion, you need to provide the bank's settlement slip and exchange rate conversion description.
Lucas LiuYears of service：8Customer Rating：5.0
Senior Operations ConsultantStart a Chat
The focus of document review for export tax refund in 2026 has shifted from "complete paper documents" to "consistent document logic". The documents required for mechanical and electrical product exports include VAT special invoice, export customs declaration, bill of lading and trade contract, and the product name, model, quantity and transaction price on all documents must be completely matched. If your enterprise has inconsistent documents, for example, the product name on the VAT special invoice is "automation equipment", while the product name on the customs declaration is "industrial robot", it will be judged as non-conforming documents by the tax authority, and your tax refund application will be rejected directly. For the goods you have shipped, you need to immediately check the consistency of all documents. If you find differences, you can contact the supplier to re-issue the VAT special invoice, or apply to the customs for modifying the product name on the customs declaration, to ensure a closed logic loop of documents. In addition, all documents need to be kept for more than 5 years for subsequent inspection by the tax authority.
Grace WangYears of service：10Customer Rating：5.0
Senior Foreign Trade ConsultantStart a Chat
The 2026 export tax refund policy is increasingly closely linked to supply chain structure. If your enterprise adopts the "domestic procurement + direct export" model, you can directly apply for export tax refund; if you adopt the "overseas warehouse stocking export" model, you need to ensure that the goods are declared and exported from China to the overseas warehouse, and the sales records of goods in the overseas warehouse are consistent with the quantity declared for domestic tax refund, otherwise you cannot enjoy the tax refund. For the export of mechanical and electrical products, it is recommended to optimize the supply chain path, choose direct voyage to the EU from Shanghai Port or Ningbo Port, to avoid the delay of customs declaration information caused by transshipment, which affects the time node of tax refund declaration. In addition, you can lock the raw material cost by signing long-term procurement contracts with suppliers, and combine the cash flow from export tax refund to further reduce the overall operating cost and improve the profit margin.
Linda GaoYears of service：7Customer Rating：5.0
Documentation SupervisorStart a Chat
The compliance review of 2026 export tax refund has been extended to the level of trade contracts. The trade contract for mechanical and electrical product exports must clearly mark the core information such as product name, model, quantity, transaction price and payment method, and the content must be consistent with that on the customs declaration and VAT special invoice. If there are vague clauses in the contract, such as "goods specifications are subject to actual delivery", it will be judged by the tax authority as unclear trade background, which affects the review of the tax refund application. For the goods you have shipped to Hamburg Port, you need to immediately check the consistency of the trade contract with the customs declaration and invoice. If there are vague clauses, you can sign a supplementary agreement with the client to clarify the specific specifications and quantity of the goods, which will be used as auxiliary materials for tax refund application. In addition, you need to pay attention that the payment clause in the contract must clearly specify the foreign exchange collection time, to avoid the failure to collect foreign exchange on time caused by vague agreement on payment time, which affects the tax refund qualification.