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Shanghai remittance must be made before export tax rebate declaration
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Our company recently exported several batches of goods at Shanghai Port. The finance department said we must wait for the foreign exchange to arrive and be marked as 'remitted' in the SAFE system before declaringexport tax rebates. What exactly does this 'remitted' mean? Does it mean we won't get a penny of tax rebate if the foreign exchange doesn't arrive? Is there a time limit?
Andy GuoYears of service：3Customer Rating：5.0
Supply Chain Management ExpertStart a Chat
The problem you encountered is a core compliance point for export tax rebates. The so-called "remitted" means that in the "Trade in Goods Foreign Exchange Monitoring System" of the State Administration of Foreign Exchange，the payment corresponding to your export customs declaration form has actually been received，and the bank has reported the collection information to the system，which shows a status of "collected". According to Announcement No. 30 of 2013 of the State Administration of Taxation，collection is a necessary condition for declaring tax rebates. If the collection is not received by April 30 of the following year，even if the customs declaration information is complete，tax rebates cannot be declared，and it must be taxed as domestic sales. You must log in to the system to confirm the "collected" mark before declaring tax rebates，otherwise the tax bureau will reject it directly. Special reminder: The collected amount must match the amount on the customs declaration form. If the difference exceeds a certain proportion，an explanation of the situation must be provided，otherwise it may trigger a tax audit.
Evelyn LiYears of service：3Customer Rating：5.0
Cross-border Compliance SupervisorStart a Chat
At the operational level, you need to take three steps: First, after the goods are exported, track the status of the tax rebate copy of the customs declaration form through the electronic port system to ensure the information has been transmitted to the tax bureau; Second, after the payment arrives, urge the bank to complete the reporting of collection information in the foreign exchange monitoring system as soon as possible, usually queryable on T+1 working day; Third, log in to the "Trade in Goods Foreign Exchange Monitoring System", enter the customs declaration number in the "Enterprise Data Query" module, and confirm that the "Collection Status" column shows "Collected". There is a key time node here: after collection confirmation, be sure to complete the tax rebate declaration within 90 days, otherwise you will lose the tax rebate qualification. It is recommended that you clarify the payment method as T/T or L/C when signing the export contract to avoid collection delays caused by forward payments affecting tax rebate cash flow.
Michael ZhangYears of service：6Customer Rating：5.0
Customs Declaration & Compliance ExpertStart a Chat
From a business negotiation perspective, you need to move the collection requirement forward to the customer communication stage. When signing the contract, clearly stipulate: "The buyer shall complete payment within X days after shipment. If the seller loses tax rebate rights due to inability to collect foreign exchange on time caused by the buyer, the corresponding loss shall be borne by the buyer". This is both professional and reserves the right of recourse. If the customer requests a payment extension due to capital turnover, you can tactfully express: "We understand your difficulties, but according to Chinese tax regulations, delayed collection will prevent us from enjoying the 13% export tax rebate. This cost is really unbearable. Can you pay part of the payment first to ensure collection, and extend the balance for 30 days?" This maintains customer relationships and holds the bottom line. Remember, never leave the collection issue to be explained afterwards; laying the groundwork in advance allows you to take the initiative.