Export Tax Rebates: Calculation Based on Rebate Rates
The formula for calculating export tax rebates for power equipment is: Refundable Tax Amount = FOB Price of Exported Goods × Export Tax Rebate Rate. The rebate rate is determined by the HS code (typically 9%–13% for electromechanical equipment).
Industry experts note that the key factors are the rebate rate and the tax calculation basis: the rate is found via the HS code (using the State Taxation Administration’s database), and the calculation is based on the FOB price (excluding tax).
Calculation methods differ between manufacturing enterprises and foreign trade enterprises, and the process is handled through the export tax rebate declaration system.
Key Points for Tax Rebate Calculation
- Refundable Tax Amount = FOB Export Price (excluding tax) × Export Tax Rebate Rate;
- Rebate Rate: Look up the rate in the database using the HS code (commonly 9%–13% for electromechanical products; specific rates depend on current regulations);
- Foreign Trade Enterprises: Refundable Tax Amount = Amount stated on the special VAT invoice for purchased export goods × Rebate Rate;
- Manufacturing Enterprises: Subject to the “Exemption, Credit, and Refund” method (the exempt/credited tax amount and the actual refund amount are calculated using specific formulas);
- Tax Calculation Basis: Export revenue is calculated based on the FOB price (excluding VAT);
over-reporting or under-reporting is prohibited.
Processing Steps
First, confirm the rebate rate.
Check the database using the HS code to verify the applicable rebate rate and the difference between the collection rate and the rebate rate.
Second, ensure all documents are complete.
Required documents include the export customs declaration, VAT invoice (for foreign trade enterprises), proof of foreign exchange receipt, and the export tax rebate declaration form.
Third, submit the declaration for processing.
File a claim through the export tax rebate system; the tax authorities will review the application and issue the refund.
Fourth, consider using an agency service: if you lack experience with tax rebates, you can engage a foreign trade company or a professional tax/accounting firm to handle the process on your behalf.
Pitfalls to Avoid
First, “HS Code Errors”: Incorrect HS codes lead to wrong rebate rates, creating a risk of under- or over-claiming.
Second, “Document Mismatches”: Discrepancies between customs declarations and invoices can result in the rejection of rebate claims.
Third, “Late Filing”: Export tax rebate applications are subject to deadlines;
missing the deadline means forfeiting the rebate.
Trends and Reminders
Tax rebates are moving toward “accelerated digitalization”: this includes paperless filing, faster processing (with some cases completed on the same day), and refined policies for cross-border e-commerce rebates.
Exporters are advised to ensure accurate HS codes, complete documentation, and timely filing.
Tax rebates represent incremental profit—calculate accurately and claim quickly.
