According to Article 37 of the newly implemented "Value-Added Tax Law" in 2025, the calculation of export tax rebates follows"Exemption, Credit, Refund"Principles, with the specific formula being:
The tax refund rate should be referenced against the "2025 Export Commodity Code and Tax Refund Rate Table."
Take the export of garments as an example: A batch of women's coats has an FOB price of $50,000, with a tax rebate rate of 13%. The refundable tax amount = 50,000 × 6.8 (exchange rate) × 13% = ¥44,200.
What factors can affect the actual tax refund amount?
Commodity classification:The accuracy of HS codes directly affects the tax rebate rate.
Example: For ceramic products categorized by usage, the tax rebate rate fluctuates between 5% and 13%.
Trade Mode:
General trade is eligible for full tax refund.
Processing trade adopts the special calculation method of "exemption, credit, and refund."
What impact will the 2025 VAT reform have on tax refunds?
The implementation this year:The normalization of VAT credit refundsThe mechanism brings about two major changes:
The tax refund processing period has been shortened to within 20 working days.
Add an electronic special invoice certification step.
Special Note: Cross-border service exports are now eligible for6% VAT zero rateThe policy, representing a 2 percentage point increase compared to 2023.
How to Avoid Common Mistakes in Tax Refund Applications?
The principle of document conformity:
The discrepancy between the customs declaration amount and the VAT invoice must be <5%.
The bill of lading date must not be later than the customs declaration date.
Time node control:
The tax refund must be completed before the deadline for the VAT tax return filing in April of the following year after export.
The deadline for foreign exchange collection is extended to 12 months after export.
Can a professional agency help recover more tax refunds?
Legal agency services do not alter the tax refund rate, but they can optimize it through the following methods:
Accurate HS Code Classification (Average Tax Refund Rate Increase of 1-3%)
Avoid tax refund losses caused by documentation flaws (approximately reducing 5% of declaration rejections)
Applying tax treaties to avoid double taxation
What risks should be considered when selecting a tax refund agent?