Jiangsu Think It Long Imp&Exp Co., Ltd. , http://www.thinkitlong.com
Entrusted agent export tax rebate processing method
When it comes to tax refunds or exemptions for exported goods, they are typically processed through the entrusting party. The specific calculation method and basis used will follow those applicable to the entrusting party. Here's how it works depending on the type of business involved:
(1) Domestic manufacturing enterprises that hold import/export licenses and are also general VAT taxpayers are treated similarly to self-exporting businesses when exporting goods entrusted by foreign-invested enterprises established after December 31, 1993. Depending on the circumstances, these exports may be calculated using either the "exemption, offset, refund" method or the "first levy, then refund" approach, as determined by the relevant tax authorities.
(2) For domestic manufacturing enterprises without import/export authority that are still classified as VAT general taxpayers, the "first levy, then refund" method is applied for calculating tax refunds.
(3) When small-scale taxpayers have their goods exported through an agent, VAT and excise taxes are waived. However, no deductions or refunds can be claimed for input tax amounts in this scenario.
(4) In cases where enterprises like commercial firms, material supply companies, foreign trade entities, or industrial trade organizations with import/export permissions handle entrusted exports, the tax refund amount is calculated based on the value-added tax (VAT) special invoice (or tax receipt) details for the purchased goods, including the total amount, unit price, export quantity, and applicable VAT rates.
It’s worth noting that the specifics of these rules can vary slightly depending on local regulations and updates to national tax policies. Businesses should always stay informed about any changes to ensure compliance and maximize potential benefits. Additionally, consulting with a tax professional can provide tailored guidance based on your company's unique situation and needs.