Good news for cross-border e-commerce! The State Administration of Taxation supports the "tax refund upon departure" policy for exporting overseas warehouses

It is learned that recently, the State Administration of Taxation issued an announcement on supporting the development of export tax refund (exemption) related matters for cross-border e-commerce exports and overseas warehouses.

The announcement shows that from January 27, 2025, the State Administration of Taxation has decided to implement the "tax refund upon departure" policy for goods exported by taxpayers through cross-border e-commerce export overseas warehouses (hereinafter referred to as export overseas warehouses).

Specifically, taxpayers export goods by exporting overseas warehouses. After the goods are declared for departure, they can apply for export tax refund (exemption) with the export goods declaration form and other relevant materials and information. When doing so, the declaration and handling method should be determined based on the sales situation of the goods:

1. If the goods have been sold, apply for export tax refund (exemption) in accordance with current regulations;

2. If the goods have not yet been sold, apply for export tax refund (exemption) in accordance with the method of "tax refund upon departure and recalculation of sales"

At the same time, taxpayers should apply for export tax refund in advance with the competent tax authorities based on the export goods declaration form and relevant materials and information, and should also apply in accordance with the following requirements:

1. Fill in the "Overseas Warehouse Pre-Refund" mark in the "Tax Refund (Exemption) Business Type" column of the declaration details form.

2. Differentiate between goods that have not been sold and goods that have been sold, and make separate declarations for export tax refund and export tax refund (exemption). If no distinction is made, all goods shall be deemed as unsold and a unified declaration for export tax refund shall be made.

3. Manufacturing enterprises shall use a separate declaration number and foreign trade enterprises shall use a separate association number to declare export tax refunds.

It is worth noting that taxpayers who have applied for export tax refunds should handle export tax refunds during the VAT declaration period before the deadline. If they fail to do so within the deadline, taxpayers should first handle export tax refunds. After they have completed the accounting procedures and settled the export tax refund (exemption), the tax authorities will handle it in accordance with the current regulations.

Previously, US President Trump signed a new tariff policy, imposing a 10% tariff on imports from China and terminating the T86 customs clearance model. The cross-border e-commerce industry faced unprecedented challenges. Although the T86 customs clearance model was quickly restored later, the threat posed by its tariff policy has not yet ended.

This policy released by my country's State Administration of Taxation on January 27 is undoubtedly a great benefit to cross-border sellers.