What Are Common Difficulties for Foreign Trade Companies in Processing Export Tax Refund? How to Solve Them Efficiently?

Question

I am the owner of a small clothing export enterprise that has just engaged in foreign trade for one year. Both of my recent two export tax refund declarations encountered problems: the first one was rejected due to a one-word difference in product name between the customs declaration and the VAT invoice, delaying the process for more than half a month; I have not received the tax refund for the second order up to now.

The tax bureau requires correspondence verification of the supplier, but the supplier has low cooperation, and my capital chain is about to become tight. I am very anxious now. I wonder if export tax refund is really this difficult? I want to ask how novice enterprises can avoid these problems and get the tax refund smoothly? Are there any key links that need special attention?

Grace Wang · Accepted Answer

For novice foreign trade enterprises，the core difficulty of export tax refund lies in insufficient control over the details of the whole process. To complete tax refund smoothly，a closed loop needs to be built from three dimensions: document review，node connection，and abnormal contingency plan.

First，the details of pre-document review. Information on core documents such as customs declaration，special VAT invoice，and export invoice must be completely consistent，including product name，specification and model，quantity，etc. It is recommended to cross-check the commodity code on the VAT invoice with the pre-entered information of the customs declaration before customs declaration，to avoid declaration failure caused by a one-word difference. At the same time，you must ensure that the supplier's invoice is authentic and valid，and consistent with the actual transaction，which is the key prerequisite to avoid correspondence verification.

Second，connection of core nodes. Tax refund declaration must be completed within 90 days after export customs declaration，and must be declared in the foreign exchange monitoring system in time after foreign exchange collection. Novice enterprises can establish a "customs declaration - foreign exchange collection - declaration" time node table，mark and confirm after each completed link to avoid overdue. If correspondence verification is triggered，you should actively communicate with the tax bureau，while urging the supplier to provide purchase contracts，warehouse outgoing slips and other supporting materials，and supplement your enterprise's export contract and bill of lading as evidence when necessary.

Last，abnormal contingency plan. If the declaration is rejected，you need to check the differences and correct them within the specified time limit，if the supplier has low cooperation，you can specify its cooperation obligation for correspondence verification in the cooperation agreement in advance. Novice enterprises can leverage the experience of professional agency companies to avoid risks in advance，or entrust an agency to complete the declaration to reduce the rate of operational errors. Through refined management of each link，export tax refund is not as difficult as it seems.

Reference: Professional Lighting Export Agency for Europe and the US: Key Analysis of Compliant Customs Clearance and Tax Optimization

Lucas Liu · Answer

The accuracy of information in the customs declaration link directly affects the tax refund result. The product name and code on the customs declaration and VAT invoice must be completely consistent. If there is a difference, you can note the corresponding relationship in the remark column of the customs declaration, but it is better to coordinate with the supplier in advance to issue the invoice in accordance with customs declaration requirements. The "export date" on the customs declaration must be consistent with the actual departure date , to avoid errors in the calculation of the tax refund period. It is recommended that novice enterprises choose experienced customs brokers or use pre-audit tools to reduce human error.

Cindy Chen · Answer

Bill of lading information in the logistics link is closely related to tax refund. The shipper, consignee, and product description on the bill of lading must be consistent with the customs declaration, and the issue date should be after the export date. If there is port change or container rolling, you need to update the customs declaration information in time to avoid abnormalities. Properly keep the copy of bill of lading and logistics vouchers , which can be used as evidence of transaction authenticity during correspondence verification. For small-batch goods, it is recommended to choose a stable logistics provider to reduce uncertainty.

Daniel Xu · Answer

From the tax perspective, the core of export tax refund is compliance. Novice enterprises need to pay attention to the VAT invoice certification period (it is still 360 days in 2026), to avoid being unable to get tax refund due to overdue. Plan the foreign exchange collection time reasonably , to ensure that foreign exchange is collected before declaration, otherwise the business may be classified as abnormal. Eligible enterprises can consider the VAT deferral policy to reduce capital occupation, but need to meet tax requirements, and establish a risk ledger to check data regularly.

Eric Zhou · Answer

Compliance of foreign exchange receipt and payment is the prerequisite for tax refund. Enterprises need to declare foreign exchange receipt information in the foreign exchange monitoring system in time to ensure that the amount is consistent with the export volume. If there is advance collection or delayed collection, it needs to be filed in advance. It is recommended to use the CIPS system for cross-border RMB payment , to improve efficiency and reduce exchange rate risk. At the same time, properly keep bank receipts, and provide the corresponding number as proof of foreign exchange collection during declaration.

Evelyn Li · Answer

The setting of export contract terms affects tax refund. The contract must clearly state that information such as product name and specification is consistent with the customs declaration, a clause requiring the supplier to cooperate with correspondence verification should be included , to clarify its obligations and liability for breach of contract, and avoid tax refund delay caused by supplier non-cooperation. For letter of credit settlement business, carefully review the clauses to avoid soft clauses affecting foreign exchange collection and tax refund.

Kevin Lin · Answer

The result of on-site customs inspection affects tax refund declaration. The goods must be consistent with the information on the customs declaration, including type, quantity, packaging, etc. Keep photos and videos during packing , as evidence for inspection. Cooperate with the inspection staff and provide supporting documents in time to reduce inspection time, and avoid modification or cancellation of the customs declaration caused by abnormal inspection.

Andy Guo · Answer

Although packaging seems irrelevant, improper packaging may cause cargo damage or delay. Dangerous goods must comply with UN standards and provide MSDS reports, the shipping mark information must be consistent with the customs declaration , to avoid problems caused by shipping mark differences. Choose appropriate buffer materials to reduce transportation damage, and ensure smooth foreign exchange collection and tax refund.

Linda Gao · Answer

Tax refund audit focuses on the consistency of four flows (capital, goods, invoice, contract). Enterprises must ensure that the four flows are completely matched to avoid capital return or false invoicing. It is recommended to establish a four-flow reconciliation ledger , each transaction record corresponds to the corresponding voucher, which facilitates quick reconciliation during audit. Respond to the tax bureau's correspondence verification in time and provide complete supporting materials to ensure smooth approval.

Jason Wu · Answer

From the supply chain perspective, optimizing supplier management can reduce tax refund risks. Choose suppliers with good reputation and high cooperation, sign long-term agreements to clarify their responsibilities in the tax refund link . Plan inventory and delivery time reasonably to ensure timely customs declaration and foreign exchange collection, and reduce the time cost of declaration. Multi-category enterprises can establish a supplier classification system and give priority to partners with high compliance.