Preliminary Work of Export Tax Rebate

Shanghai Company Registration Service
Hotline: 86-755-82143422 Email: 2355725105@qq.com

Export Tax Rebate Policies
After your export products leave the country, the Chinese government will give back the tax you have already incurred during domestic production and circulation—this is what we mean by export tax rebate. Your finance director will be very happy to get money from the government, instead of it flowing in the other direction as is more usual.

Shanghai Export Tax Rebate–VAT Exemption and Rebate Policy
There are two ways to implement the VAT exemption and rebate policy applicable to zero-rated goods:
•Exemption, credit, and refund method (ECR method); and
•Exemption and refund method (ER method).

ECR Method
The ECR method is generally applicable only to production enterprises qualified as general taxpayers (no credit and refund is available for small-scale taxpayers). Exemption means that goods which are exported by production enterprises either directly or on consignment through foreign trade companies are exempt from output VAT.

Credit means that, for enterprises whose self-produced goods are both exported and sold domestically, the input VAT credit on materials purchased for the production of export goods is offset against the output VAT on domestic sales.

Refund means that, after offsetting the input VAT against the VAT payable, any excess amount of input VAT is refundable.

ER Method
The ER method is applied to the export of goods or services by export enterprises or other enterprises with no manufacturing capabilities. Under the ER method, output VAT of the exported goods is exempted, and a certain portion of input VAT is refundable, but not creditable.

Consumption Tax Rebate
In general, export goods are not subject to consumption tax. For goods covered by the VAT exemption and rebate policy, CT is also exempt. If the exported goods were originally imported into China, the CT paid at import is refundable.

For goods that are VAT exempt, CT is also exempt, however, previously paid CT is neither refundable nor creditable from CT payable for domestically sold goods

contact us
If you have further queries, please don’t hesitate to contact ATAHK anytime, anywhere by simply visiting ATAHK’s website www.3737580.net , or calling Shanghai hotline at 86-21-58822399,86-21-31397142, or emailing to hkcfm-shanghai@163.com,or adding our QQ:2355725119 ,skype:shtannet123