Recently, the State Taxation Administration of China issued a notice on supporting the export tax refund (exemption) for goods exported through cross-border e-commerce using overseas warehouses.

According to the notice, starting from January 27, 2025, the State Taxation Administration of China will implement an “immediate tax refund upon departure” policy for goods exported via cross-border e-commerce using overseas warehouses (hereinafter referred to as "exported overseas warehouses").

Specifically, taxpayers who export goods through overseas warehouses can apply for an export tax refund (exemption) after the goods depart and clear customs, based on the export customs declaration and related documentation. The method of declaration will depend on the sales status of the goods:

1. If the goods have been sold, the taxpayer should apply for the export tax refund (exemption) according to current regulations.
2. If the goods have not been sold, the “immediate tax refund upon departure, sales-based recalculation” method should be followed for applying the export tax refund (exemption).

In addition, taxpayers must submit export customs declaration documents and other related information to the tax authorities to apply for a pre-export tax refund. They should follow these requirements when making the declaration:

1. In the “Tax Refund (Exemption) Business Type” column of the declaration form, enter the “Overseas Warehouse Pre-Refund” mark.
2. Distinguish between goods that have been sold and those that have not been sold, and apply for pre-export tax refunds and export tax refunds separately. If not distinguished, all goods will be treated as unsold and will be processed as pre-export tax refunds.
3. Manufacturing enterprises should use separate declaration serial numbers, while foreign trade enterprises should use separate association numbers for applying for pre-export tax refunds.

It is important to note that taxpayers who have applied for a pre-export tax refund should complete the tax refund calculation within each VAT tax filing period before the calculation period ends. If not completed by the deadline, taxpayers should first proceed with the export tax refund calculation. Once the calculation is completed and the export tax refund (exemption) is settled, the tax authorities will handle it in accordance with current regulations.

Previously, U.S. President Trump signed a new tariff policy imposing a 10% tariff on imports from China and terminated the T86 customs clearance mode. The cross-border e-commerce industry faced unprecedented challenges. Although the T86 clearance mode was soon restored, the threat from the tariff policy remains.

The policy announced by the State Taxation Administration of China on January 27 is undoubtedly a positive development for cross-border sellers.