Export tax refund is a key financial benefit for Chinese exporters, allowing recovery of VAT paid on inputs used in exported goods. Understanding the refund rates, eligibility criteria, and application process is essential for maximizing profitability.
Refund Rates and Eligibility
Refund rates vary by product category, ranging from 0% to 13% depending on government policy. Products classified as encouraged exports typically receive higher refund rates. The refund is calculated based on the FOB value of exports multiplied by the applicable refund rate.
Application Timeline
Refund applications should be submitted within the specified deadline after export declaration. Proper documentation including export contracts, customs declarations, and VAT invoices is required for successful processing.