Export Tax Refund Calculation Methods and Case Studies

I. Export Tax Refund Calculation Methods

The core goal of export tax refunds is to reduce business costs and enhance international competitiveness by refunding paid value-added tax (VAT) and consumption tax. Calculation methods vary based on enterprise type (trading or manufacturing) and trade model (general trade, processing trade, etc.):

1. Trading Enterprises

• Scenario: Direct export of domestically purchased goods or processed goods.
• Formula: $\text{Refundable Tax}=\text{Tax-exclusive Purchase Amount}\times \text{Refund Rate}$Refundable Tax=Tax-exclusive Purchase Amount×Refund Rate
  • Tax-exclusive Purchase Amount = Tax-inclusive Price ÷ (1 + VAT Rate)
• Example: A trading company purchases goods worth RMB 1.13 million (13% VAT rate) with a 13% refund rate. Refundable Tax = (1.13 million ÷ 1.13) × 13% = RMB 130,000.

2. Manufacturing Enterprises: Exemption, Credit, and Refund Method

Manufacturers follow a four-step "exemption, credit, and refund" process:

1. Tax Adjustment: Calculate non-refundable tax. $\text{Non-Deductible Tax}=\text{FOB Value}\times (\text{Tax Rate}-\text{Refund Rate})$Non-Deductible Tax=FOB Value×(Tax Rate−Refund Rate)
2. Tax Credit: Calculate current payable tax. $\text{Tax Payable}=\text{Domestic Sales VAT Output}-(\text{Input VAT}-\text{Non-Deductible Tax})-\text{Carry-over Tax}$Tax Payable=Domestic Sales VAT Output−(Input VAT−Non-Deductible Tax)−Carry-over Tax
3. Refund Quota: Compute exemptible and refundable tax. $\text{Exemptible and Refundable Tax}=\text{FOB Value}\times \text{Refund Rate}$Exemptible and Refundable Tax=FOB Value×Refund Rate
4. Final Refund: Compare the absolute value of tax payable with the refund quota; the smaller value is refunded.

Example: A manufacturer exports goods with an FOB value of RMB 50 million (9% refund rate, 13% tax rate), input VAT of RMB 8 million, and domestic sales VAT output of RMB 5 million.

• Non-Deductible Tax = 50 million × (13% - 9%) = RMB 4 million
• Tax Payable = 5 million - (8 million - 4 million) = RMB 1 million (payable) If tax payable is negative (carry-over tax), the full refund quota is applied.

3. Cross-border E-commerce Policies

Under 2025 regulations, cross-border e-commerce exports via overseas warehouses (9810 model) qualify for "refund upon departure", allowing advance refund claims before goods are sold. Final tax adjustments are made based on actual sales.

II. Case Studies

Case 1: Trading Enterprise Profit Optimization

A garment exporter purchases goods worth RMB 2.26 million (13% VAT rate) with a 9% refund rate.

• Tax-exclusive Purchase Amount = 2.26 million ÷ 1.13 = RMB 2 million
• Refundable Tax = 2 million × 9% = RMB 180,000
• Cost Optimization: Switching to suppliers with a 13% refund rate increases the refund to RMB 260,000, boosting profit by RMB 80,000.

Case 2: Manufacturing Enterprise Refund Process

An electronics manufacturer exports goods worth RMB 50 million (13% refund rate), input VAT of RMB 60 million, and domestic VAT output of RMB 20 million.

• Non-Deductible Tax = 50 million × (13% - 13%) = 0
• Tax Payable = 20 million - 60 million = -RMB 40 million (carry-over tax)
• Refund Quota = 50 million × 13% = RMB 65 million
• Actual Refund = RMB 40 million (carry-over tax)
• Exemptible Tax = 65 million - 40 million = RMB 25 million.

Case 3: Cross-border E-commerce Compliance Risk

A cross-border e-commerce company using the 9810 model failed to provide valid sales documentation due to incomplete logistics records, resulting in a reclaimed pre-refund of RMB 500,000. Compliance with filing requirements is critical.

Conclusion

Export tax refund calculations depend on enterprise type and trade models. Trading enterprises use purchase-based formulas, while manufacturers follow the "exemption, credit, and refund" method. Cross-border e-commerce businesses benefit from accelerated refunds under new policies but must prioritize compliance. Strategic use of refund mechanisms can significantly reduce costs and strengthen global competitiveness.