Foreign trade bosses, do you know that the country will also give you “cash back on shopping”?
This is the export tax rebate!
To put it simply, if you sell goods abroad that have paid VAT in China, the country will refund this part of the tax to you in proportion.
This money does not fall from the sky, but your actual pure profit!
Trading companies (foreign trade enterprises) do tax refunds, and the core logic is “buy low, sell high + tax refund”.
For example: you purchase a batch of goods from the factory for 1.13 million (including tax), and then sell them to foreign customers for 1.5 million.
As long as the factory issues you a special invoice for 13% VAT, and the tax refund rate is 13%, you can get a tax refund of 1 million (excluding tax) × 13% = 130,000!
This 130,000 yuan is directly credited to your account, which is equivalent to your purchasing cost being reduced to 1 million yuan, and your profits are instantly full.
So, how can the trading company successfully get the money?
Remember the “tax refund-free” policy and “three streams in one”:
1. Invoices must comply with regulations: you must obtain a special value-added tax invoice issued by the upstream. Regular invoices cannot be refunded.
2. The data must be consistent: the product name, quantity, and amount of your purchase contract, export declaration, and foreign exchange receipt must completely correspond.
3. The process must be standardized: after customs declaration of goods and sales accounting, you can declare it to the electronic tax bureau with relevant vouchers. After passing the review, the money will be transferred to your public account.
Export tax rebate is not only a way to save money, but also a trump card to enhance the competitiveness of your international quotation!
In today’s increasingly fierce competition in the international market, price is often one of the important factors for customers to choose suppliers.
Through export tax rebates, you can reduce the cost of your products, thereby giving you an advantage in quotations and attracting more foreign customers.
In addition, compliance tax refunds can also help you accumulate corporate credit and facilitate subsequent financing.
In business activities, a good credit record is a valuable asset for an enterprise.
Processing export tax rebates on time and in compliance with regulations demonstrates the company’s standardized tax practices, which helps improve the company’s credit rating in the eyes of financial institutions.
When a company needs financing to expand production and expand markets, a good credit record can increase the company’s chances of obtaining a loan and may enjoy more favorable loan interest rates.
For foreign trade companies, export tax rebates are a policy benefit that cannot be ignored.
An in-depth understanding of the rules and procedures for export tax rebates and active use of this policy will help enterprises improve profitability, enhance market competitiveness, and achieve better development in the international market.
