Fiscal And Taxation Concepts Related To Export Tax Rebates For Production Enterprises

Export tax rebate refers to the value-added tax actually undertaken by the state in the production and circulation of export goods before export, which will be returned to the export enterprise after the goods are declared for export. Among them, the tax rebate method for trade-oriented enterprises is to first collect and then retreat, while production-oriented enterprises have the domestic sales, the tax rebate method is exempted, the export output tax is exempted, and the credit is the domestic sales VAT paid by the enterprise. It is offset against the input VAT, and the refund is the tax refund income remaining after the offset.

Next, let's take a look at some related fiscal and tax concepts of export tax rebates for production enterprises.

Current tax payable

Current tax payable refers to the output value-added tax that production enterprises should pay to the national government when selling domestically. "Current period" refers to the financial accounting period of this month / quarter. So how do we calculate how much tax should be paid by production enterprises in the current period?

The calculation method of the tax payable in the current period is actually the difference between the taxes and fees for the domestic sales tax and the deductible input tax. Among them, the enterprise supplies the goods to the foreign trade company, and the sales value-added tax invoice issued by the company, the 17% output tax is the domestic sales tax to be paid. The deductible input tax refers to the input VAT paid in advance for the imported raw materials, spare parts and other products by the enterprise in this month / quarter.

There are two points to note here. One is because the input tax is deductible, so the current tax rebate is not exempt from taxation and deduction. We must deduct this part of the non-deductible. The second is that the input tax in the previous period was more than the output tax on domestic sales. It was not fully offset, and the remaining tax amount remained at the end of the period. This part of the tax deductions at the end of the period should also be reduced.

After the calculation, if the tax payable in the current period is positive, it means that there is more output tax than input tax for the current month / quarter. In fact, the tax to be paid by the enterprise is more than the tax refunded by the national government to the enterprise, and the input is not enough to deduct the tax. Conversely, if the current tax payable is negative, it means that the input is sufficient to deduct, and the input tax is greater than the output tax payable. The current tax payable that has not been deducted, the absolute value is equal to the tax deductions remaining at the end of the current period.

End of period tax deduction

The tax deductions at the end of the period refer to the non-deductible tax amount generated after the input tax amount and the output tax amount in the current month. "Retained" means to keep the deduction next month. That is to say, the input tax of the enterprise in that month is greater than the output tax, and the retained tax is carried forward to the next period of deduction.

Under what circumstances will there be a tax deduction at the end of the period? When the taxable amount is negative, the tax deductions at the end of the current period should be equal to the absolute value of the taxable amount. Moreover, the remaining tax credit at the end of the period cannot deduct the value-added tax owed in the previous month, and can only be carried forward to the next period of deduction.

Tax credit exemption

Theoretically, the country should be returned to export enterprise's tax rebate is equal to the enterprise's export income x tax rebate rate. But in fact, although it is exempt, it is not the exemption of zero interest rate, but the tax of low interest rate. For example, the current tax exemption and tax deduction, this part of the country is not to give a tax refund, so the enterprise is unable to offset.

Therefore, the final national tax is to determine how much tax is returned to the enterprise according to the export sales amount of the enterprise * a certain percentage of the tax refund rate. Among them, different products have set different rates of tax rebate. If the production enterprises and factories are 100% export-oriented and do not do domestic sales, they can enjoy the maximum tax rebate income of the country because they do not have to pay the output VAT generated by domestic sales.

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