What taxes are actually involved in export agency?

Agency export business primarily involves two core types of taxes and fees:

• Value Added Tax
  • The "exemption, credit, and refund" policy applies to the export process.
  • The standard tax rate remains at 13% (current policy extended until 2025).
• Export tax refund
  • Calculate the tax refund rate based on the corresponding HS code of the product.
  • The 2025 tax rebate rate catalog maintains a three-tier classification: 13%, 10%, 6%, and 0%.

Export tax refundHow to calculate the amount accurately?

The 2025 tax refund calculation will continue to follow the "exemption, credit, and refund" formula, which involves a four-step process:

• Step 1: Confirm the commodity code
  • Confirmed through the HS Code Inquiry System of the General Administration of Customs.
  • Pay attention to the adjustment of 37 new commodity codes added in 2025.
• Step 2: Calculate the VAT payable

  Formula: Current Tax Payable = Current Output Tax - (Current Input Tax - Non-Deductible and Non-Exempt Tax)

• Step 3: Determine the applicable tax refund rate
  • Please refer to the "2025 Export Commodity Code and Tax Refund Rate Table".
  • Cross-border supply chain enterprises may apply for simplified taxation at a 3% tax rate.
• Step 4: Calculate the refundable tax amount

  Formula: Refundable Tax Amount = VAT Refund Rate ×Export goodsFOB price × exchange rate

What are the three common misconceptions about export tax rebates?

• Misconception 1: Full tax refund on the tax-inclusive price.

  The actual refundable amount = tax-exclusive purchase price × refund rate, not tax-inclusive price × refund rate.

• Misconception 2: The tax refund rate equals the VAT rate.

  According to 2025 data, the tax refund rate for approximately 68% of goods is lower than the VAT rate.

• Misconception 3: Neglecting the Management of Input Tax Invoices

  Compliance Case: A Machinery Export Enterprise Successfully Recovers Cumulative Tax Refunds of 820,000 Yuan Over 3 Years by Properly Safeguarding Input Invoices

What are the new changes in the 2025 tax refund calculation?

• The comprehensive implementation of electronic invoices.

  Starting from January 2025, paper-form special VAT invoices will no longer be in use.

• Launch of intelligent tax refund system

  Enterprises can calculate the estimated tax refund amount in real time through the electronic port.

• Simplified tax rebates for cross-border e-commerce

  For B2C export transactions with a single invoice amount below $5,000, the provision of purchase invoices may be exempted.

How to Avoid Tax Refund Losses? Three Key Professional Tips

• Establish a commodity tax rate archive

  It is recommended to update the announcement on changes in tax refund rates issued by the General Administration of Customs on a monthly basis.

• Standardize document management

  Key documents to retain: procurement contracts, value-added tax invoices,Export customs clearanceSingle, Receipt of Payment Voucher

• Choosing a professional agency

  High-quality proxy services can improve tax refund efficiency by approximately 15% (according to the 2025 industry survey report).

Practical Case: Tax Refund Calculation for a Machinery Enterprise in 2025

Export equipment parameters:

• HS Code: 8457109000 (Tax Rebate Rate: 13%)
• Customs declaration amount: USD 120,000 (exchange rate 6.85)
• Input tax: RMB 85,000

Calculation process:

• Output tax: 120,000 × 6.85 × (13% - 13%) = 0 (tax exemption for exports)
• Tax refund amount: 120,000 × 6.85 × 13% = RMB 106,860
• Actual refundable: min(input tax 85,000, refundable 106,860) = RMB 85,000