Tax RefundHow exactly is it calculated?

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:

• Refundable Tax Amount = FOB Price of Export Goods × Tax Refund Rate
• 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."
• : Handling cross - border foreign exchange receipts and payments, reporting to the State Administration of Foreign Exchange: A complete set is required.A complete export agency agreement should be attached with:Voucher

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?

• Beware of "High Tax Refund Guaranteed" Promises (May Involve Tax Fraud)
• Verify the customs AEO certification qualification of the agency.
• Verify the connectivity capability of the electronic port system.