Export tax refunds are mainly used to balance the tax burden of domestic products by refunding the internal tax paid on exported products, so that domestic products can enter the international market at a cost free of taxes, and compete with foreign products in the same conditions, thus improving competitiveness and expanding exports. Earn foreign exchange.
Why does the higher EXW cost compare to FOB?
Because FOB in dollars already includes the cost of Tax Refund, with the support of the government, it is competitively priced in FOB. In that case, you can consider working in FOB, or ask the factory to invoice us and we pay the tax percentage.
Who has the power to bill?
The actual factories I register in China. But for small or medium factories, it has a Tax Exemption quota, if it always helps companies to bill, it exceeds its quota, the factory will appear as another taxpayer, it will have to pay more taxes and there will be no more free quota.
Who can refund taxes?
Exporters. There are many factories that only offer EXW prices because the nature of your company is not an export company. So, you can’t do tax refund. in that case, the purchasing agent companies or companies that are registered in China as exporter that they can request the invoices of the product from the factory to make tax reimbursement.
How do we ask the factories to help us bill?
As I have said before, small and medium factories cannot invoice the value that exceeds their quota, and we have to talk with them to help us do so. It all depends on the factory, they have no obligation to do the billing. we have to request it.
For example, the factory buys the raw materials, it will also request the invoice for the raw material, so it can invoice the invoice to the exporting company, each process has a percentage of the invoice. because no factory is going to pay extra cost for invoicing.
What is the factory turnover percentage?
Normally 8% -10%, it depends on the conversation with the factory, inchuso there is a 16% invoice. We cannot force the factory to issue invoices, nor can we specify how many to issue, we can only negotiate and reach an agreement.
Of course, most of the factories are ambles that can help us to invoice.Tax refund completion time?
More 3 months. That is, during the process, we have to give the tax percentage costs and without moving it.
In which case is it necessary to make tax refunds?
A product that we export by quantities and has a higher rate of return, in that case, we consider doing it.
Important: No matter how the tax refund is operated, we must complete it according to Chinese law.