--- title: "Can overseas processing fees paid by enterprises during export tax refund declaration enjoy preferential tax refund policies?" description: "Foreign trade enterprises often have doubts about the scope of tax refund for processing fees when declaring export tax refunds，and are prone to risks such as tax bureau verification letters and suspension of tax refund qualification due to incorrect declarations. It is necessary to classify and identify the compliance of processing fees: processing fees corresponding to domestic entrusted processing with special VAT invoices with remarks can be declared，overseas processing fees must comply with..." url: "https://www.sh-zhongshen.com/en/qa/export-tax-refund-overseas-processing-fee-eligibility.html" language: "en" type: "Q&A" category: "Export Tax Rebate Q&A" datePublished: "2026-10-29" dateModified: "2026-10-29" brand: "Zhongshen Trading China" answerCount: 9 --- # Can overseas processing fees paid by enterprises during export tax refund declaration enjoy preferential tax refund policies? ## Question I am the person in charge of a foreign trade enterprise in Shanghai that engages in both feed processing and domestic entrusted processing. Last month, we exported a batch of outdoor waterproof tents to Germany, which included cutting and sewing processing fees paid to a factory in Jiaxing, Zhejiang, as well as post-processing waterproof coating fees entrusted to a German overseas factory. Previously, we only included the cost of purchased tent fabrics when declaring export tax refunds. This week, during financial reconciliation, our finance team suddenly mentioned that processing fees might also be eligible for tax refund. However, I just heard last week that a peer received a tax bureau verification letter due to incorrect declaration of processing fee tax refunds and had their tax refund qualification suspended for the next three months, so I am very anxious. Moreover, this batch of overseas processing fees was paid via an offshore account without special VAT invoices, and two of the domestic processing fee invoices were issued across quarters. We are about to conduct the Q2 2026 tax refund declaration and urgently want to clarify which processing fees are eligible for refund and how to declare them correctly to avoid pitfalls? ## Answers ### Answer 1 — Best Answer First，we need to clarify common industry misconceptions: not all processing fees related to export goods are eligible for export tax refund. Many enterprises mistakenly assume that any processing expenses can be included in the declaration scope，which actually does not meet policy requirements. If enterprises incorrectly include non-compliant processing fees in tax refund declarations，it will trigger the tax bureau's key verification mechanism. At the minimum，it will result in the suspension of the enterprise's export tax refund processing qualification and a requirement to repay the refunded tax amount，at worst，it will lead to a tax bureau verification letter，and even the enterprise being listed as an export tax refund dishonest enterprise，which will prolong the customs clearance time of subsequent goods，restrict foreign exchange receipts and payments，and may also affect the enterprise's bank credit line and cross-border business qualification. Two core operations are required for risk isolation: first，**classify and identify the compliance of processing fees**: processing fees corresponding to domestic entrusted processing with special VAT invoices (which must be marked with "entrusted processing goods") can be declared normally，overseas processing fees must be necessary production links for feed processing and re-export business，and proforma invoices，payment vouchers and foreign exchange monitoring system filing records must be provided. Second，**ensure full matching of the four flows**: the fund flow，invoice flow，contract flow and goods flow of processing fees must correspond one-to-one. Processing fees paid in cash or without compliant vouchers are strictly prohibited from being declared. Exclusive risk mitigation tip: If you have already completed an incorrect declaration，you should actively submit the Amended Export Tax Refund Declaration Form before the tax bureau initiates verification，cancel the incorrect declaration and supplement compliant documents. At the same time，you can entrust a professional foreign trade agency to assist with pre-declaration verification to identify potential risk points in advance. **status:** accepted **Author:** Jason Wu **Date:** 2026-10-29 ### Answer 2 The declaration form corresponding to processing fees must be filled out strictly in compliance with regulations. For the declaration form of feed processing and re-export goods, the total amount of domestic and overseas processing fees must be accurately marked in the "Incidental Expenses" column, and the "Remarks" column must be marked with "feed processing entrusted processing". For the declaration form of export goods entrusted for domestic processing, the customs code of the processing factory must be filled in the "Manufacturer/Seller" column, rather than the foreign trade enterprise's own customs code. If the declaration form is not marked as required, the tax bureau will initiate a verification letter due to mismatched documents when verifying the tax refund declaration. At this time, supplementary materials such as processing contracts and production records must be submitted, otherwise the tax refund review will not be passed, and you may even be required to repay the refunded tax amount. In addition, the trade mode of the declaration form must fully match the processing type: the "Processing with Imported Materials" trade mode must be selected for feed processing business, and the entrusted processing sub-item under "General Trade" must be selected for entrusted processing business, to avoid the processing fee being excluded from the tax refund scope due to incorrect trade mode. **status:** suggested **Author:** Andy Guo **Date:** 2026-10-29 ### Answer 3 The goods logistics link corresponding to processing fees must fully match the processing content declared for tax refund. Goods entrusted for domestic processing must be shipped directly from the processing factory to the export port, or complete inbound and outbound records must be retained when transiting through the foreign trade enterprise's warehouse. Logistics documents (such as waybills and warehouse receipts) must be marked with "entrusted processing export goods" and the production link corresponding to the processing fee. If the logistics path is abnormal, such as domestic processed goods being shipped directly from overseas, the tax bureau will suspect the authenticity of the processing fee and trigger verification. In addition, for overseas processed goods, shipment records of the overseas processing factory, international waybills and inbound declaration forms (if transit processing is involved) must be provided to prove the authenticity and necessity of the processing link, to avoid the processing fee being unable to apply for tax refund due to missing logistics documents. At the same time, payment vouchers for logistics fees must be retained to ensure that the fund flow in the logistics link matches the goods flow, further verifying the compliance of the processing fee. **status:** suggested **Author:** Evelyn Li **Date:** 2026-10-29 ### Answer 4 For export tax refunds for processing fees, compliance planning must be carried out in combination with cross-border tax structures. Processing fees for domestic entrusted processing can apply for export tax refund after deducting input tax amount with special VAT invoices, and the tax refund rate is consistent with that of the export goods. Overseas processing fees must be necessary production links for feed processing and re-export business, and can be included in the tax-free verification scope of feed processing to enjoy the "exemption, credit and refund" policy. If the enterprise has cross-border related-party transactions, the pricing of overseas processing fees must comply with the arm's length principle, to avoid being identified by the tax bureau as profit shifting due to low pricing, which will lead to adjustment of the refundable tax amount. In addition, under the current 2026 policies, overseas processing fees do not need to pay VAT, but must be filed for service trade payment in the foreign exchange monitoring system, otherwise they cannot be included in the tax refund calculation scope. For processing fee expenses of small-scale taxpayers, since special VAT invoices cannot be obtained, they cannot apply for export tax refunds and must be included in the cost calculation of export goods. **status:** suggested **Author:** Linda Gao **Date:** 2026-10-29 ### Answer 5 The receipt and payment link of processing fees must strictly comply with foreign exchange supervision requirements. Domestic processing fees must be paid via corporate account transfer, and cash payment or private account transfer is prohibited. Payment vouchers must be marked with "entrusted processing fee" and match the amount and payment time agreed in the processing contract. Overseas processing fees must be filed for payment through the "Service Trade" module of the foreign exchange monitoring system, and materials such as processing contracts, proforma invoices and export goods declaration forms must be submitted. Payment can only be completed after the filing is approved. If the payment record is not filed in the system, or the payment amount does not match the processing fee amount declared for tax refund, the tax bureau will identify it as abnormal fund flow and suspend the review of tax refund declarations. In addition, payment vouchers must be retained for at least 5 years for subsequent tax bureau verification. If the payment voucher is lost, you need to apply to the bank for a payment certificate and submit it to the tax bureau for review. **status:** suggested **Author:** Kevin Lin **Date:** 2026-10-29 ### Answer 6 The terms of the processing contract must fully match the requirements of export tax refund policies. The contract must clearly specify the amount of processing fees, payment method, processing content and the export purpose of the processed goods, and must be marked with "processed goods for export". Overseas processing contracts must clearly specify the qualifications of the processing factory, processing cycle and quality standards, to avoid being identified by the tax bureau as unrelated to export goods due to vague contract terms. If the processing contract does not clearly specify the export purpose, the tax bureau will consider that the processing fee is not within the scope of export tax refund during verification, and thus reject the tax refund application. In addition, it must be ensured that the contracting party of the processing contract is completely consistent with the party paying the processing fee and the party declaring the tax refund, to avoid four-flow mismatch and trigger tax risks due to inconsistent subjects. If there is a situation where a third party is entrusted to pay the processing fee, a tripartite entrusted payment agreement must be signed and filed with the tax bureau to prove the compliance of the fund flow. **status:** suggested **Author:** Victor Sun **Date:** 2026-10-29 ### Answer 7 If the customs on-site inspection finds that the processing technology of the export goods does not match the processing contract and the processing fee content declared for tax refund, the declaration form will be amended, which will affect the review of the tax refund declaration. At this time, materials such as production records, process sheets and quality inspection reports of the processing factory must be submitted to prove that the processing link corresponding to the processing fee is real and meets the quality requirements of the export goods. If it is found during on-site inspection that the goods have not been processed as agreed in the contract, such as the waterproof coating not meeting the agreed standards, the customs will identify the goods as unqualified, which will affect the export tax refund application. In addition, it must be ensured that the packaging and marking of the processed goods are consistent with the processing contract, to avoid the customs suspecting the authenticity of the processing fee due to inconsistent packaging and triggering subsequent tax verification. If the processed goods involve dangerous goods, a qualification certificate for dangerous goods processing must be provided to prove the compliance of the processing link. **status:** suggested **Author:** Grace Wang **Date:** 2026-10-29 ### Answer 8 The export tax refund for processing fees must strictly implement the document filing system. Materials such as processing contracts, special VAT invoices (for domestic processing), proforma invoices (for overseas processing), payment vouchers, logistics documents and declaration forms must be sorted and archived, with a retention period of at least 5 years. If the tax bureau cannot provide complete filing documents during verification, the tax refund will be identified as non-compliant, and you will be required to repay the refunded tax amount and pay late payment fees. In addition, internal audits of processing fee tax refund declarations must be conducted regularly to identify potential risk points, such as whether the amount of processing fees matches the production demand of the goods, whether the invoice issuance time matches the processing cycle, and whether the four flows are fully matched. If non-compliant declarations are found, corrections must be made in time and submitted to the tax bureau for review, to avoid being listed as an export tax refund dishonest enterprise. At the same time, an internal review process for processing fee tax refunds must be established to clarify the responsibilities of each position and ensure the compliance of declarations. **status:** suggested **Author:** Michael Zhang **Date:** 2026-10-29 ### Answer 9 When planning the supply chain, the tax refund policy for processing fees must be included in the cost calculation model. Prioritize domestic processing factories that can issue special VAT invoices to increase the proportion of eligible tax refund processing fees and reduce the overall export cost. For feed processing business, the processing link can be optimized to transfer part of overseas processing to domestic processing to enjoy a higher tax refund rate. In addition, the processing cycle must be reasonably planned to ensure that the invoice issuance time and payment time of processing fees match the customs declaration time of export goods, to avoid four-flow mismatch and trigger tax risks due to time differences. At the same time, a dynamic monitoring mechanism for processing fees must be established to track the expenditure of processing fees, invoice issuance, payment and tax refund declarations in real time, and adjust the supply chain strategy in time to improve the efficiency and compliance of tax refunds. If there are cross-border processing businesses, select processing factories in countries or regions that have signed tax treaties with China to enjoy preferential policies under the tax treaty and reduce the tax cost of cross-border processing. **status:** suggested **Author:** Daniel Xu **Date:** 2026-10-29 ## Related Categories - [Import Agency Q&A](https://www.sh-zhongshen.com/en/qa/cat-import-agency/) - [Export Agency Q&A](https://www.sh-zhongshen.com/en/qa/cat-export-agency/) - [Customs Declaration Q&A](https://www.sh-zhongshen.com/en/qa/cat-customs-declaration/) - [Freight Forwarding Q&A](https://www.sh-zhongshen.com/en/qa/cat-freight-forwarding/) - [Forex Settlement Q&A](https://www.sh-zhongshen.com/en/qa/cat-forex-settlement/) - [Entrepôt Trade Q&A](https://www.sh-zhongshen.com/en/qa/cat-entrepot-trade/) - [General Trade Q&A](https://www.sh-zhongshen.com/en/qa/cat-general-trade/) ## Related Resources - [Trade Services](https://www.sh-zhongshen.com/en/services/) - [Trade Cases](https://www.sh-zhongshen.com/en/cases/) - [Trade Wiki](https://www.sh-zhongshen.com/en/wiki/) - [Trade Class](https://www.sh-zhongshen.com/en/guide/) - [Global Trade Services](https://www.sh-zhongshen.com/en/country/) ## Structured Data ```json [ { "@context": "https://schema.org", "@type": "QAPage", "inLanguage":"en", "isPartOf": { "@id":"https://www.sh-zhongshen.com/en/#website" }, "publisher":{ "@id":"https://www.sh-zhongshen.com/en/#organization" }, "mainEntity": { "@type": "Question", "name": "Can overseas processing fees paid by enterprises during export tax refund declaration enjoy preferential tax refund policies?", "text": "I am the person in charge of a foreign trade enterprise in Shanghai that engages in both feed processing and domestic entrusted processing. Last month, we exported a batch of outdoor waterproof tents to Germany, which included cutting and sewing processing fees paid to a factory in Jiaxing, Zhejiang, as well as post-processing waterproof coating fees entrusted to a German overseas factory. Previously, we only included the cost of purchased tent fabrics when declaring export tax refunds. This week, during financial reconciliation, our finance team suddenly mentioned that processing fees might also be eligible for tax refund. However, I just heard last week that a peer received a tax bureau verification letter due to incorrect declaration of processing fee tax refunds and had their tax refund qualification suspended for the next three months, so I am very anxious. Moreover, this batch of overseas processing fees was paid via an offshore account without special VAT invoices, and two of the domestic processing fee invoices were issued across quarters. We are about to conduct the Q2 2026 tax refund declaration and urgently want to clarify which processing fees are eligible for refund and how to declare them correctly to avoid pitfalls?", "answerCount": 9, "upvoteCount": 6, "datePublished": "2026-10-29T21:27:52Z", "dateModified": "2026-10-29T21:32:57Z", "author": { "@type": "Person", "name": "Zhongshen Trading China", "url": "https://www.sh-zhongshen.com/en/qa/export-tax-refund-overseas-processing-fee-eligibility.html" } ,"acceptedAnswer": { "@type": "Answer", "text": "First，we need to clarify common industry misconceptions: not all processing fees related to export goods are eligible for export tax refund. Many enterprises mistakenly assume that any processing expenses can be included in the declaration scope，which actually does not meet policy requirements. If enterprises incorrectly include non-compliant processing fees in tax refund declarations，it will trigger the tax bureau's key verification mechanism. At the minimum，it will result in the suspension of the enterprise's export tax refund processing qualification and a requirement to repay the refunded tax amount，at worst，it will lead to a tax bureau verification letter，and even the enterprise being listed as an export tax refund dishonest enterprise，which will prolong the customs clearance time of subsequent goods，restrict foreign exchange receipts and payments，and may also affect the enterprise's bank credit line and cross-border business qualification. Two core operations are required for risk isolation: first， classify and identify the compliance of processing fees : processing fees corresponding to domestic entrusted processing with special VAT invoices (which must be marked with "entrusted processing goods") can be declared normally，overseas processing fees must be necessary production links for feed processing and re-export business，and proforma invoices，payment vouchers and foreign exchange monitoring system filing records must be provided. Second， ensure full matching of the four flows : the fund flow，invoice flow，contract flow and goods flow of processing fees must correspond one-to-one. Processing fees paid in cash or without compliant vouchers are strictly prohibited from being declared. Exclusive risk mitigation tip: If you have already completed an incorrect declaration，you should actively submit the Amended Export Tax Refund Declaration Form before the tax bureau initiates verification，cancel the incorrect declaration and supplement compliant documents. At the same time，you can entrust a professional foreign trade agency to assist with pre-declaration verification to identify potential risk points in advance.", "upvoteCount": 6, "url": "https://www.sh-zhongshen.com/en/qa/export-tax-refund-overseas-processing-fee-eligibility.html#acceptedAnswer", "datePublished": "2026-10-29T23:35:57Z", "author": {"@type": "Person","name": "Jason Wu","url": "https://www.sh-zhongshen.com/en/team/jason-wu/"} } ,"suggestedAnswer": [ { "@type": "Answer", "text": "The declaration form corresponding to processing fees must be filled out strictly in compliance with regulations. For the declaration form of feed processing and re-export goods, the total amount of domestic and overseas processing fees must be accurately marked in the "Incidental Expenses" column, and the "Remarks" column must be marked with "feed processing entrusted processing". For the declaration form of export goods entrusted for domestic processing, the customs code of the processing factory must be filled in the "Manufacturer/Seller" column, rather than the foreign trade enterprise's own customs code. If the declaration form is not marked as required, the tax bureau will initiate a verification letter due to mismatched documents when verifying the tax refund declaration. At this time, supplementary materials such as processing contracts and production records must be submitted, otherwise the tax refund review will not be passed, and you may even be required to repay the refunded tax amount. In addition, the trade mode of the declaration form must fully match the processing type: the "Processing with Imported Materials" trade mode must be selected for feed processing business, and the entrusted processing sub-item under "General Trade" must be selected for entrusted processing business, to avoid the processing fee being excluded from the tax refund scope due to incorrect trade mode.", "upvoteCount": 0, "url": "https://www.sh-zhongshen.com/en/qa/export-tax-refund-overseas-processing-fee-eligibility.html#suggestedAnswer-2", "datePublished": "2026-10-29T23:35:34Z", "author": {"@type": "Person","name": "Andy Guo","url": "https://www.sh-zhongshen.com/en/team/andy-guo/"} } , { "@type": "Answer", "text": "The goods logistics link corresponding to processing fees must fully match the processing content declared for tax refund. Goods entrusted for domestic processing must be shipped directly from the processing factory to the export port, or complete inbound and outbound records must be retained when transiting through the foreign trade enterprise's warehouse. Logistics documents (such as waybills and warehouse receipts) must be marked with "entrusted processing export goods" and the production link corresponding to the processing fee. If the logistics path is abnormal, such as domestic processed goods being shipped directly from overseas, the tax bureau will suspect the authenticity of the processing fee and trigger verification. In addition, for overseas processed goods, shipment records of the overseas processing factory, international waybills and inbound declaration forms (if transit processing is involved) must be provided to prove the authenticity and necessity of the processing link, to avoid the processing fee being unable to apply for tax refund due to missing logistics documents. At the same time, payment vouchers for logistics fees must be retained to ensure that the fund flow in the logistics link matches the goods flow, further verifying the compliance of the processing fee.", "upvoteCount": 0, "url": "https://www.sh-zhongshen.com/en/qa/export-tax-refund-overseas-processing-fee-eligibility.html#suggestedAnswer-3", "datePublished": "2026-10-29T22:52:47Z", "author": {"@type": "Person","name": "Evelyn Li","url": "https://www.sh-zhongshen.com/en/team/evelyn-li/"} } , { "@type": "Answer", "text": "For export tax refunds for processing fees, compliance planning must be carried out in combination with cross-border tax structures. Processing fees for domestic entrusted processing can apply for export tax refund after deducting input tax amount with special VAT invoices, and the tax refund rate is consistent with that of the export goods. Overseas processing fees must be necessary production links for feed processing and re-export business, and can be included in the tax-free verification scope of feed processing to enjoy the "exemption, credit and refund" policy. If the enterprise has cross-border related-party transactions, the pricing of overseas processing fees must comply with the arm's length principle, to avoid being identified by the tax bureau as profit shifting due to low pricing, which will lead to adjustment of the refundable tax amount. In addition, under the current 2026 policies, overseas processing fees do not need to pay VAT, but must be filed for service trade payment in the foreign exchange monitoring system, otherwise they cannot be included in the tax refund calculation scope. For processing fee expenses of small-scale taxpayers, since special VAT invoices cannot be obtained, they cannot apply for export tax refunds and must be included in the cost calculation of export goods.", "upvoteCount": 0, "url": "https://www.sh-zhongshen.com/en/qa/export-tax-refund-overseas-processing-fee-eligibility.html#suggestedAnswer-4", "datePublished": "2026-10-29T22:50:02Z", "author": {"@type": "Person","name": "Linda Gao","url": "https://www.sh-zhongshen.com/en/team/linda-gao/"} } , { "@type": "Answer", "text": "The receipt and payment link of processing fees must strictly comply with foreign exchange supervision requirements. Domestic processing fees must be paid via corporate account transfer, and cash payment or private account transfer is prohibited. Payment vouchers must be marked with "entrusted processing fee" and match the amount and payment time agreed in the processing contract. Overseas processing fees must be filed for payment through the "Service Trade" module of the foreign exchange monitoring system, and materials such as processing contracts, proforma invoices and export goods declaration forms must be submitted. Payment can only be completed after the filing is approved. If the payment record is not filed in the system, or the payment amount does not match the processing fee amount declared for tax refund, the tax bureau will identify it as abnormal fund flow and suspend the review of tax refund declarations. In addition, payment vouchers must be retained for at least 5 years for subsequent tax bureau verification. If the payment voucher is lost, you need to apply to the bank for a payment certificate and submit it to the tax bureau for review.", "upvoteCount": 0, "url": "https://www.sh-zhongshen.com/en/qa/export-tax-refund-overseas-processing-fee-eligibility.html#suggestedAnswer-5", "datePublished": "2026-10-29T22:29:48Z", "author": {"@type": "Person","name": "Kevin Lin","url": "https://www.sh-zhongshen.com/en/team/kevin-lin/"} } , { "@type": "Answer", "text": "The terms of the processing contract must fully match the requirements of export tax refund policies. The contract must clearly specify the amount of processing fees, payment method, processing content and the export purpose of the processed goods, and must be marked with "processed goods for export". Overseas processing contracts must clearly specify the qualifications of the processing factory, processing cycle and quality standards, to avoid being identified by the tax bureau as unrelated to export goods due to vague contract terms. If the processing contract does not clearly specify the export purpose, the tax bureau will consider that the processing fee is not within the scope of export tax refund during verification, and thus reject the tax refund application. In addition, it must be ensured that the contracting party of the processing contract is completely consistent with the party paying the processing fee and the party declaring the tax refund, to avoid four-flow mismatch and trigger tax risks due to inconsistent subjects. If there is a situation where a third party is entrusted to pay the processing fee, a tripartite entrusted payment agreement must be signed and filed with the tax bureau to prove the compliance of the fund flow.", "upvoteCount": 0, "url": "https://www.sh-zhongshen.com/en/qa/export-tax-refund-overseas-processing-fee-eligibility.html#suggestedAnswer-6", "datePublished": "2026-10-29T22:18:18Z", "author": {"@type": "Person","name": "Victor Sun","url": "https://www.sh-zhongshen.com/en/team/victor-sun/"} } , { "@type": "Answer", "text": "If the customs on-site inspection finds that the processing technology of the export goods does not match the processing contract and the processing fee content declared for tax refund, the declaration form will be amended, which will affect the review of the tax refund declaration. At this time, materials such as production records, process sheets and quality inspection reports of the processing factory must be submitted to prove that the processing link corresponding to the processing fee is real and meets the quality requirements of the export goods. If it is found during on-site inspection that the goods have not been processed as agreed in the contract, such as the waterproof coating not meeting the agreed standards, the customs will identify the goods as unqualified, which will affect the export tax refund application. In addition, it must be ensured that the packaging and marking of the processed goods are consistent with the processing contract, to avoid the customs suspecting the authenticity of the processing fee due to inconsistent packaging and triggering subsequent tax verification. If the processed goods involve dangerous goods, a qualification certificate for dangerous goods processing must be provided to prove the compliance of the processing link.", "upvoteCount": 0, "url": "https://www.sh-zhongshen.com/en/qa/export-tax-refund-overseas-processing-fee-eligibility.html#suggestedAnswer-7", "datePublished": "2026-10-29T22:13:55Z", "author": {"@type": "Person","name": "Grace Wang","url": "https://www.sh-zhongshen.com/en/team/grace-wang/"} } , { "@type": "Answer", "text": "The export tax refund for processing fees must strictly implement the document filing system. Materials such as processing contracts, special VAT invoices (for domestic processing), proforma invoices (for overseas processing), payment vouchers, logistics documents and declaration forms must be sorted and archived, with a retention period of at least 5 years. If the tax bureau cannot provide complete filing documents during verification, the tax refund will be identified as non-compliant, and you will be required to repay the refunded tax amount and pay late payment fees. In addition, internal audits of processing fee tax refund declarations must be conducted regularly to identify potential risk points, such as whether the amount of processing fees matches the production demand of the goods, whether the invoice issuance time matches the processing cycle, and whether the four flows are fully matched. If non-compliant declarations are found, corrections must be made in time and submitted to the tax bureau for review, to avoid being listed as an export tax refund dishonest enterprise. At the same time, an internal review process for processing fee tax refunds must be established to clarify the responsibilities of each position and ensure the compliance of declarations.", "upvoteCount": 0, "url": "https://www.sh-zhongshen.com/en/qa/export-tax-refund-overseas-processing-fee-eligibility.html#suggestedAnswer-8", "datePublished": "2026-10-29T21:40:22Z", "author": {"@type": "Person","name": "Michael Zhang","url": "https://www.sh-zhongshen.com/en/team/michael-zhang/"} } , { "@type": "Answer", "text": "When planning the supply chain, the tax refund policy for processing fees must be included in the cost calculation model. Prioritize domestic processing factories that can issue special VAT invoices to increase the proportion of eligible tax refund processing fees and reduce the overall export cost. For feed processing business, the processing link can be optimized to transfer part of overseas processing to domestic processing to enjoy a higher tax refund rate. In addition, the processing cycle must be reasonably planned to ensure that the invoice issuance time and payment time of processing fees match the customs declaration time of export goods, to avoid four-flow mismatch and trigger tax risks due to time differences. At the same time, a dynamic monitoring mechanism for processing fees must be established to track the expenditure of processing fees, invoice issuance, payment and tax refund declarations in real time, and adjust the supply chain strategy in time to improve the efficiency and compliance of tax refunds. If there are cross-border processing businesses, select processing factories in countries or regions that have signed tax treaties with China to enjoy preferential policies under the tax treaty and reduce the tax cost of cross-border processing.", "upvoteCount": 0, "url": "https://www.sh-zhongshen.com/en/qa/export-tax-refund-overseas-processing-fee-eligibility.html#suggestedAnswer-9", "datePublished": "2026-10-29T21:32:57Z", "author": {"@type": "Person","name": "Daniel Xu","url": "https://www.sh-zhongshen.com/en/team/daniel-xu/"} } ] } }, { "@context": "https://schema.org", "@type": "BreadcrumbList", "itemListElement": [ {"@type": "ListItem", "position": 1, "name": "Home", "item": "https://www.sh-zhongshen.com/en/"},{"@type": "ListItem", "position": 2, "name": "Q&A", "item": "https://www.sh-zhongshen.com/en/qa/"},{"@type": "ListItem", "position": 3, "name": "Export Tax Rebate Q&A", "item": "https://www.sh-zhongshen.com/en/qa/cat-export-tax-rebate/"} ,{"@type": "ListItem", "position": 4, "name": "Can overseas processing fees paid by enterprises during export tax refund declaration enjoy preferential tax refund policies?"} ] } ] ```