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Under the current 2026 export tax refund policy framework, what are the two main types of taxes eligible for refund?
or complex compliance issues.
clearance and fund security.
I am the head of a foreign trade enterprise in Shanghai specializing in high-end beauty product exports. Last month, we signed an order for 120,000 pieces of matte lipstick to be shipped to Germany. The goods are currently stored in the warehouse awaiting customs declaration. When sorting out tax refund documents, the finance department suddenly raised a question: they have only handled value-added tax refunds before, and heard from peers that export tax refunds involve another tax, but they cannot remember the specific name. There are only 5 days left before the customs declaration deadline.
If the tax type is identified incorrectly, not only may the tax refund be temporarily withheld, but it may also affect the customs clearance efficiency of subsequent orders. Last year, a neighboring peer had their tax refund delayed by 3 months due to incorrect declaration of refundable tax types, which tied up a large amount of working capital. I am very anxious now and want to know clearly which two taxes are mainly refunded under export tax refund policies, as well as the declaration requirements for these two taxes, to avoid pitfalls that affect business.
Eric ZhouYears of service：6Customer Rating：5.0
Senior Manager of Foreign Exchange & Tax RebatesStart a Chat
The two main types of taxes refunded under export tax refund policies are Value-Added Tax (VAT) and Consumption Tax. This is a clear provision under the current 2026 export tax refund policy，and is also a core link where foreign trade enterprises are prone to making mistakes.
A common industry misconception is that only VAT refunds are focused on，completely ignoring the eligibility for consumption tax refunds - especially for export enterprises specializing in taxable consumer goods such as beauty products，jewelry，refined oil，and high-end watches. If they fail to declare consumption tax refunds simultaneously，they will not only directly lose the corresponding proportion of tax refunds，but may also trigger the official letter verification process of the tax authority due to incomplete tax declaration，resulting in the temporary withholding of the entire tax refund for 3-6 months，tying up the enterprise's working capital. It may even affect the enterprise's export tax refund credit rating，thereby reducing the customs clearance priority of subsequent orders and increasing additional costs such as port detention and storage fees.
Risk isolation measures need to be arranged in advance: during the stock preparation stage，confirm whether the export products fall within the taxable scope against the latest edition of the *Consumption Tax Category and Rate Table*，and sort out core documents such as special VAT invoices for procurement and consumption tax payment certificates simultaneously. If a foreign trade agency is entrusted to handle the process，it is necessary to clearly require the agency team to simultaneously review the declaration eligibility and document completeness for both types of taxes.
Exclusive loss mitigation tip: If you have omitted the consumption tax declaration，you need to submit supplementary documents including the consumption tax payment certificate，copy of the export goods declaration form and corresponding sales contract as soon as possible before the tax authority issues an early warning，proactively apply for supplementary tax refund declaration，and explain the objective reason for the missed declaration to the tax authority，to avoid triggering credit penalties and minimize losses.
Lucas LiuYears of service：8Customer Rating：5.0
Senior Operations ConsultantStart a Chat
In the export customs declaration process, the electronic copies of the special VAT invoice and consumption tax payment certificate shall be uploaded simultaneously in the "attached documents" column of the customs declaration form. If consumption taxable goods are involved, the option "Export Tax Refund (Consumption Tax)" shall be accurately selected in the "taxation nature" column to avoid subsequent tax refund audit failure due to mismatch between customs declaration information and tax refund declaration information. The "Customs Declaration Form - Tax Refund Form Linkage Verification System" implemented by the customs in 2026 will automatically compare the information of product name, quantity and tax type between the two forms.
If the verification fails, the goods may be temporarily withheld for verification, resulting in additional costs such as port detention fees and storage fees, and may even affect the enterprise's customs credit rating, reduce the customs clearance priority of subsequent orders and increase the customs clearance review time. In addition, if the enterprise fails to mark the consumption tax refund identifier during customs declaration, it needs to additionally submit the *Consumption Tax Export Refund Filing Form* for subsequent supplementary declaration, which will extend the tax refund cycle by at least 10 working days.
Evelyn LiYears of service：3Customer Rating：5.0
Cross-border Compliance SupervisorStart a Chat
For VAT and consumption tax refunds, enterprises can maximize benefits by optimizing the procurement supply chain structure: for VAT, it is necessary to cooperate with suppliers that can issue special VAT invoices with a 13% tax rate to ensure the maximum tax refund base; for consumption tax, if the export products fall within the scope of composite taxation (such as cigarettes, liquor), it is necessary to accurately calculate the respective refund amounts of ad valorem tax and specific duty, to avoid insufficient tax refund amount due to accounting errors.
The "consumption tax deferred payment" policy implemented in some cross-border e-commerce comprehensive pilot zones in 2026 allows export enterprises to delay the payment of corresponding consumption tax for 3 months after the goods are declared for export, and complete the payment after the tax refund is received, effectively reducing the working capital occupation cost of enterprises. In addition, enterprises need to regularly sort out their tax refund qualifications to ensure that they meet the latest tax refund thresholds, so as to avoid tax refund failure due to policy adjustments.
Kevin LinYears of service：4Customer Rating：5.0
Trade Solutions ManagerStart a Chat
In the export tax refund audit process, the tax authority will focus on verifying the "four-flow consistency" of VAT and consumption tax: for VAT, it is necessary to verify that the product name, quantity and amount on the procurement contract, special VAT invoice, customs declaration form and foreign exchange receipt certificate are completely matched; for consumption tax, it is necessary to verify that the tax calculation basis on the consumption tax payment certificate, product outbound order and customs declaration form is consistent.
If there is information inconsistency, such as a difference between the product name on the special VAT invoice and the customs declaration form, or a mismatch between the tax calculation amount on the consumption tax payment certificate and the declared tax refund amount, it will directly lead to the temporary withholding of the tax refund, and even trigger a tax inspection, and the enterprise shall bear the responsibility of paying back taxes, late fees, etc. The tax authority upgraded the tax refund audit system in 2026, which will automatically capture abnormal information and issue early warnings. Enterprises need to submit supplementary supporting materials within 3 working days after receiving the warning to avoid triggering further penalties.
Michael ZhangYears of service：6Customer Rating：5.0
Customs Declaration & Compliance ExpertStart a Chat
After the VAT and consumption tax refunds corresponding to export tax refunds are received, the fund nature of "export VAT refund" and "export consumption tax refund" shall be accurately marked in the foreign exchange monitoring system, to avoid being listed as a key monitoring object of foreign exchange due to incorrect marking of fund nature. Under the "cross-border fund classified supervision" policy implemented by the State Administration of Foreign Exchange (SAFE) in 2026, if enterprises frequently make mistakes in marking fund nature, their foreign exchange credit rating will be downgraded, which will affect the efficiency of subsequent foreign exchange purchase and settlement, and even their cross-border payment and receipt quotas will be restricted, affecting the normal operation of enterprises.
In addition, enterprises need to check the received tax refund information against the tax refund declaration ledger to ensure that the tax refund amount is consistent with the declared amount. If there is a difference, they need to verify the reason with the tax authority and SAFE in time.
Andy GuoYears of service：3Customer Rating：5.0
Supply Chain Management ExpertStart a Chat
When signing an export contract, the ownership of tax refund responsibility for VAT and consumption tax shall be clearly agreed: if the factory is entrusted to handle procurement and tax payment procedures, it shall be clearly required in the contract that the factory provide legal and valid special VAT invoices and consumption tax payment certificates.
If the tax refund fails due to non-compliant documents provided by the factory, the factory shall bear the corresponding loss compensation responsibility, including tax refund loss, capital occupation cost, late fees, etc. In addition, all original and electronic copies of documents related to tax refunds shall be kept for no less than 5 years, to avoid inability to provide evidence due to document loss, which may lead to legal disputes with suppliers and tax authorities. The revised *Model Text for Foreign Trade Contracts* in 2026 has added clauses on tax refund responsibility, which enterprises can refer to for use to reduce legal risks.
Cindy ChenYears of service：3Customer Rating：5.0
Key Account ManagerStart a Chat
In supply chain planning, the tax refund cycles of VAT and consumption tax shall be included in the capital turnover calculation model: the VAT refund cycle is usually 15-20 working days after declaration, and the consumption tax refund cycle is usually 20-25 working days due to additional verification of tax payment certificates. Enterprises can adjust the stock preparation rhythm according to the tax refund cycle, for example, arrange the procurement of the next batch of goods before the VAT refund is received, and pay the supplier's balance after the consumption tax refund is received, to avoid supply chain rupture due to insufficient working capital.
In addition, the circulation time of customs declaration forms can be shortened by choosing a nearby export port, and the tax refund declaration process can be started in advance to improve capital turnover efficiency. The "customs declaration - tax refund integration" service implemented in some ports in 2026 can advance the tax refund declaration time by 3-5 working days, further optimizing capital turnover.