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Export rebates tax (duty-free )

Posted by: Jack | 2016-08-27 10:51:19

Export rebate (duty-free) tax refers to the country of output goods exempt from its overseas goods should pay in the territory of consumption tax in international trade or refund according to the tax law have to pay taxes (value-added tax, consumption tax).


It is  a tax measure commonly used in international trade and accepted by all countries, which aim to encourage countries to export goods fair competition.


According to the conditions prevailing in the international community and China current practices and with reference to international practice, China implement the export rebate (duty-free) systems and management practices. The approach clearly states: enterprises with export rights exported goods, except as otherwise provided, can submit to the tax authorities on a monthly refund or exemption from value added tax and consumption tax with the relevant evidence, after the declaration of export goods for financial sale.


The basic system of export tax rebates


China export goods tax system is set up by China national conditions, which is the special tax system relatively independent from other tax administration. In 1994, we made a comprehensive industrial and commercial tax reform. According to the guiding ideology of reform, the State Administration of Taxation has formulated and promulgated the "export rebate (duty-free) management approach", "export tax rebate electronic management approach" and other provisions, which made a specific provisions on the refund calculation methods, general management, clearing and inspection. In recent years, it carry out on a number of reform and improvement according to the actual situation. At present, the content of the export tax rebate system in our country mainly includes the following aspects:


Enterprises enjoying the export tax rebate right refer to the enterprise that approved by the relevant departments and gain the import and export management rights. It mainly contains foreign trade companies and the production enterprises with mport and export rights which includes the foreign-invested enterprises and some special company with small export volume, such as ocean shipping supply company, duty-free company, and so on. Currently, there are about 100,000 such kinds of enterprises. With the liberalization of the export operation rights, the number of enterprises for export tax rebates will gradually increase in the future.


The goods that enjoy a rebate, in addition to duty-free goods, articles prohibited for export and not refund goods, other goods can enjoy tax rebate policy. Tax rebates divided into VAT and consumption tax. From 2004, the VAT rebate rate is classified in 5 levels, respectively 17%, 13%, 11%, 8%, 5%, with the average tax rate of 12%. The rebate rate of consumption tax act according to the statutory rate.


The main export rebates implemented in two ways: First, the foreign trade enterprises implement the tax exemption and tax refund method, which means to exempt the VAT of the  exported goods in sales cycle, and allow the tax rebate of the exported goods at the circulation of the various production link; second, the exported goods from the producers self-support or commissioned implement the duty-free, tax deductible, drawback tax, and the export of goods exempted from VAT.


The export tax rebate implements plan management. Ministry of Finance plans to arrange the export tax rebate plan annually in the central budget, and perform which is assigned to the provinces (autonomous regions and municipalities) by the State Administration of Taxation. Refunds are not allowed to beyond the plan, and the plan may not be carried out forward to use in the next annual.


All export enterprises export tax rebate implement on computer electronic management. Through the application , review, approval of computer, since 2003, it enabled the export tax rebate subsystem of "port electronic law enforcement system". The customs declaration of tax refund, foreign exchange verification and other export tax rebate vouchers implement the documents checking with the government department, ensuring the authenticity and accuracy of the declaration documents.


Classification of Export tax refund (duty-free) 


According to the current tax policy, the taxes in China export tax refund (exemption) are two types: value-added tax in scope of turnover taxes (also known as indirect taxes), and consumption tax.


The taxes of export tax refund (duty-free) are the VAT and consumption tax which are paid in the link of domestic production and circulation.


Tags: Export, Drawback, Rebate Tax, Import

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