Export tax rebate is a policy implemented by the state to encourage exports, refunding the value-added tax that has already been paid domestically on exported goods to the exporting enterprise. For many foreign trade companies, the export tax rebate is an important source of profit. In some industries, the rebate amount even exceeds the profit from the trade itself.
What is Export Tax Rebate?
The core logic of export tax rebate is: When goods are produced in China, Value-Added Tax is paid (usually 13%). When the goods are exported abroad, the foreign consumer does not pay tax to the Chinese government, so this already-paid VAT is refunded to the exporter.
Simply put:
Without Export Tax Rebate: Factory Profit × Export Volume
With Export Tax Rebate: Factory Profit × Export Volume + Tax Rebate (Extra Profit)Which Enterprises Can Apply for a Rebate?
| Enterprise Type | Eligibility | Condition |
|---|---|---|
| General Taxpayer with Import/Export Rights | ✅ Yes | Must complete export tax rebate registration |
| Small-scale Taxpayer | ❌ Not Eligible | Can only be tax-exempt, not rebated |
| Agent Export | ✅ Handled by Agent Company | The agent company returns the rebate to the client |
| Market Procurement Trade | ❌ Not Eligible | Tax-exempt but not rebated |
Rebate Rate
The rebate rate depends on the HS code of the exported goods, and different commodities have different rates:
| Rebate Rate | Common Goods | Explanation |
|---|---|---|
| 13% (Full Rebate) | Some electrical and mechanical products | Refunds the total VAT paid |
| 10% | Some industrial products | Common rebate rate |
| 6% | Some chemical products | Lower rebate rate |
| 0% (No Rebate) | Resource-based goods (crude oil, ores, timber) | Restricted export goods usually have no rebate |
Rebate rates are adjusted periodically. It is recommended to check the latest rate table on the State Taxation Administration's official website or with your local tax bureau before exporting.
How Is the Rebate Amount Calculated?
Calculation Formula
Rebate Amount = FOB Price of Exported Goods × Rebate RateCalculation Example
FOB Price of Export Goods: $10,000
USD Exchange Rate: 7.2
FOB Amount in RMB: $10,000 × 7.2 = ¥72,000
Rebate Rate: 13%
Rebate Amount: ¥72,000 × 13% = ¥9,360Rebate Declaration Process
Goods Exported → Customs Clearance (usually 2-3 weeks after export.)
→ Obtain Export Customs Declaration Form (Rebate Copy)
→ Collect VAT Input Invoices
→ Declare Rebate in Tax Bureau System
→ Tax Bureau Review → Rebate Amount CreditedDocuments Required for Rebate Application
| Document | Explanation |
|---|---|
| Export Customs Declaration Form (Rebate Copy) | Obtained after customs clearance |
| Special VAT Invoice | Obtained when purchasing goods |
| Export Invoice | Self-made export invoice by the enterprise |
| Contract | Export sales contract |
| Bill of Lading / Waybill | Transport document |
Rebate Timeline Reference
| Stage | Suggested Time |
|---|---|
| Goods Export → Customs Clearance | 2-3 weeks |
| Gather All Documents | Within 1 month after export |
| Tax Bureau Review | 10-20 business days |
| Rebate Amount Credited | 1-2 weeks after review is passed |
| From Export to Rebate Crediting | Approximately 2-3 months |
Important Notes for Rebate
| Point | Explanation |
|---|---|
| Complete Documentation | Missing any document will affect the rebate |
| Compliant Invoices | Special VAT invoices must be genuine and valid |
| Timely Declaration | Complete within the declaration period of the month following the export |
| Verification Compliance | The tax bureau will verify the authenticity of the export transaction |
The Rebate Is Profit, Not a Cost
Many foreign trade newcomers overlook the contribution of export tax rebates to their profit. Using the example of a product with a 13% rebate rate:
| Item | Amount |
|---|---|
| Export FOB Price | ¥100,000 |
| Production Cost | ¥80,000 |
| Gross Profit | ¥20,000 (20% gross margin) |
| Rebate Amount | ¥13,000 (13% rebate rate) |
| Total Profit Including Rebate | ¥33,000 |
The rebate brings an extra 65% profit — which is one of the reasons why products with low profit margins (like textiles and small commodities) still attract traders in foreign trade.
📖 Extended Reading:
- 👉 Customs Clearance Guide: Complete Process for Export Tax Rebate — Detailed operational guide on rebate declaration
- 👉 International Shipping Operations: Full Structure of Shipping Costs — Overview of export logistics costs
📞 Questions about Export Tax Rebate? Bofeng Logistics can assist with export customs clearance and related logistics procedures to ensure a smooth rebate process. Hotline: 13075678958 | info@zhbfwl.com
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