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What is the specific operation process of export tax refund when entrusting an agent for export in Jiangsu?
or complex compliance issues.
clearance and fund security.
I am the person in charge of a small textile manufacturing enterprise in Suzhou. Last month, we just exported a batch of home textiles worth 800,000 RMB to Germany through Zhongshen, which is our first foreign trade export business.
Our company has never been involved in tax refund related business before, and we have no dedicated foreign trade position. Recently I have been checking local tax refund policies in Jiangsu every day but still cannot figure out the procedure, which makes me extremely anxious. I heard that the tax refund review for agent export is particularly strict.
If there is any missing information in documents or wrong operation of the process, it will not only lead to tax refund failure and occupy a large amount of capital, but also affect the company's subsequent export credit. I would like to ask how to operate specifically, what core documents need to be prepared, and whether there are any pitfalls that must be avoided?
Jason WuYears of service：10Customer Rating：5.0
International Logistics & Supply Chain ManagerStart a Chat
First of all，for the details of pre document review，three types of core documents need to be checked emphatically: First，Certificate of Goods Exported on Agency，which requires to ensure that the agency company has completed filing in Jiangsu tax system，and the name and quantity of goods are completely consistent with those on the customs declaration form，Second，special VAT invoice，the remark column of the invoice shall indicate the words "goods exported on agency"，and the invoicing content shall accurately match the commodity code and product name on the customs declaration form，Third，export goods customs declaration form，which requires to confirm that the "domestic source of goods" is marked as Jiangsu local，and the original copy affixed with the customs inspection seal is fully retained.
Two key points shall be grasped for core node connection: First，information synchronization between the enterprise and the agent. Within 30 days after the goods are declared for export，the enterprise shall hand over all documents to the agent，and the agent shall complete tax refund pre-audit within 90 days from the date of export，Second，communication and connection with Jiangsu tax authorities. If any document information discrepancy is found in the pre-audit，correction shall be completed within 3 working days to avoid rejection of formal declaration.
Abnormal response plans shall be formulated in advance: If the information on the customs declaration form is inconsistent with the invoice，immediately contact the customs to apply for form modification，and coordinate with the tax authority to modify the invoice information simultaneously，If the tax refund declaration triggers an early warning，submit evidentiary materials or Certificate of Export Goods Converted to Domestic Sales within 15 days to avoid triggering tax inspection.
The final compliant implementation shall ensure "four-flow consistency"，that is，full matching of goods flow，capital flow，invoice flow and contract flow. After the agent completes the tax refund，the enterprise shall check the received amount in time，and retain all documents for no less than 5 years to meet the follow-up verification requirements of Jiangsu tax authorities.
Andy GuoYears of service：3Customer Rating：5.0
Supply Chain Management ExpertStart a Chat
The customs declaration form for agent export in Jiangsu is the core voucher for tax refund. Special attention shall be paid to that the filling of "domestic source of goods" must be consistent with the actual production place of the enterprise.
If the filling is wrong, the tax authority will directly reject the tax refund application. In addition, the "trade mode" on the customs declaration form shall be marked as "general trade" or "agent export". If other modes such as "sample and advertising goods" are selected by mistake, the tax refund policy cannot be enjoyed.
If an error is found after customs declaration, apply for form deletion and re-declaration within 10 days after the goods are exported. If the time limit is exceeded, a situation explanation shall be submitted to the customs, otherwise the tax refund time limit will be affected.
Daniel XuYears of service：10Customer Rating：5.0
Director of Import & Export OperationsStart a Chat
When Jiangsu enterprises handle tax refund through agent export, they can apply for the connection between VAT credit refund and export tax refund. If the enterprise has VAT credit amount for domestic sales business, it can apply for credit refund first, and then handle export tax refund to avoid capital occupation.
In addition, it should be noted that Jiangsu tax authorities implement a "tolerance handling" mechanism for tax refund declaration of agent export. If non-core documents are missing, the declaration can be submitted first, and the documents can be supplemented within 15 days. There is no need to wait for all documents to be complete before declaration, which can effectively shorten the tax refund cycle.
Kevin LinYears of service：4Customer Rating：5.0
Trade Solutions ManagerStart a Chat
The capital flow of agent export shall meet the requirements of Jiangsu foreign exchange administration. When enterprises collect foreign exchange, they shall settle through the foreign exchange account of the agency company, and the foreign exchange collection amount shall be consistent with the FOB amount on the customs declaration form.
If there is a difference, a difference explanation shall be submitted to the foreign exchange administration, indicating reasonable expenses such as freight and insurance premium, otherwise it will be judged as abnormal capital flow and affect the tax refund review. In addition, foreign exchange collection shall be completed through CIPS or SWIFT system, and the payment and receipt messages shall be retained as capital flow vouchers for verification of tax authorities.
Cindy ChenYears of service：3Customer Rating：5.0
Key Account ManagerStart a Chat
The focus of Jiangsu tax authorities' verification of agent export tax refund is "four-flow consistency". During the audit, they will compare the transport documents of goods flow, foreign exchange payment and receipt vouchers of capital flow, special VAT invoices of invoice flow, and agency export contracts of contract flow one by one.
If any of the four flows is inconsistent, tax letter verification will be initiated, requiring the enterprise to provide supplementary materials. If the letter verification fails to pass, the tax refund application will be rejected, and the enterprise may also be listed as a key tax monitoring object. Therefore, the four types of documents shall be sorted and filed in advance to ensure a logical closed loop.
Lucas LiuYears of service：8Customer Rating：5.0
Senior Operations ConsultantStart a Chat
The agency export contract shall clarify the division of tax refund responsibilities. Jiangsu tax authorities require that the contract must indicate that "the agency company is responsible for assisting the enterprise in handling export tax refund, and the enterprise shall provide true and valid documents".
If the contract does not specify this clause, the enterprise cannot claim liability from the agency company in case of tax refund failure. In addition, the time for fund transfer after the tax refund is received shall be agreed in the contract to avoid the agency company occupying the tax refund fund, and the original contract shall be retained as a supplementary voucher for tax verification.
Linda GaoYears of service：7Customer Rating：5.0
Documentation SupervisorStart a Chat
The logistics transport documents for agent export are auxiliary vouchers for tax refund verification. Jiangsu tax authorities may require the provision of bills of lading, packing lists, logistics waybills and other materials, and it shall be ensured that the goods information on these documents is completely consistent with that on the customs declaration form and invoice.
In addition, if the goods are transshipped, the loading and unloading records of the transshipment port shall be retained to avoid being questioned by the tax authority due to unclear goods flow direction. In case of abnormal situations such as container rollover and port change, the customs declaration form information shall be updated in time, the logistics abnormality explanation shall be submitted to the agency company, and the tax authority shall be informed simultaneously to avoid affecting the tax refund review.