Essential Reading for Yiwu Business Owners: New Export Tax Rebate Rules Effective from 2026!

Business owners in Yiwu who engage in foreign trade understand that once the goods are shipped and the customs declaration is made, the next most important thing is the export tax rebate. Starting from 2026, the 'rules of the game' for export tax rebates have been updated—the 'Administrative Measures for the Refund (Exemption) of Value-Added Tax and Consumption Tax on Export Business' (Announcement No. 5 of 2026 by the State Administration of Taxation) has been implemented since January 1, 2026, replacing the long-standing 'Administrative Measures for the Refund (Exemption) of Value-Added Tax and Consumption Tax on Export Goods and Services' (Announcement No. 24 of 2012).

This change affects management and procedural processes, not the rebate rates themselves. However, it is precisely these procedural details that can easily hold up the tax rebate. Below, we will focus on the three most critical aspects.

I. What Does the New Method Cover? In a Word: Consolidating Dispersed Regulations into a Single 'Operational Manual'

According to the policy interpretation by the State Administration of Taxation, the new method consists of eight chapters, covering general provisions, filing, application, processing, certificate management, service and management matters, other provisions and violation handling, and supplementary provisions. Simply put, the previously scattered regulations on the management of export tax rebates (exemptions) from different years and documents have been consolidated into a unified set of measures, making it easier for enterprises to follow.

The scope of application includes the value-added tax and consumption tax rebates (exemptions) for exported goods, as well as cross-border sales of services and intangible assets (collectively referred to as 'export business'). The new method itself does not change the policy framework; whether an export business qualifies for a rebate and the method of calculation still follow the policies outlined in the 'Announcement on the Value-Added Tax and Consumption Tax Policies for Export Business' (Announcement No. 11 of 2026 by the Ministry of Finance and the State Administration of Taxation).

II. First Thing: Filing for Export Tax Rebates (Exemptions), Don't Wait Until the Day of Application

When It Must Be Done

Article 4 of the new method clearly states: taxpayers shall apply to the competent tax authority for the filing of export tax rebates (exemptions) when they first apply for export tax rebates (exemptions) or request the issuance of an export tax rebate (exemption) certificate. This means that you can complete the filing after your tax registration, but no later than the first application.

Simplified Forms, But Complete Documentation Required

Previously, there were five forms for export tax rebate (exemption) filings and specific business filings. The new method consolidates these into one universal 'Export Tax Rebate (Exemption) Filing Form,' achieving 'one form for all.' Additionally, the supporting documents required for the filing of eight specific entities, such as research institutions, have been integrated into one 'List of Supporting Documents for Export Tax Rebate (Exemption) Filing,' ensuring 'one list for clarity.'

Two Easily Overlooked Time Points

• Change in Filing Content: If the filing content changes, the taxpayer must apply to the competent tax authority for a change in the filing within thirty days of the change.
• Before Cancellation of Tax Registration: You must first apply to the competent tax authority to withdraw the export tax rebate (exemption) filing and settle the export tax rebate (exemption) before withdrawing the filing. Those who wish to simply 'walk away' by canceling the company will be stopped by this requirement.

In addition, if a company wishes to change from 'exemption, offset, and refund' to 'exemption and refund' or vice versa, it should, in principle, first settle the export tax rebate (exemption). After the change, the company cannot apply for the previous export business. If there are objective reasons preventing settlement (such as not having received all VAT special invoices or being in the process of letter verification), the new method provides a solution: after submitting the 'Report on Unsettled Export Tax Rebate (Exemption) Business,' the company can continue to apply for the rebate after the change.

III. Second Thing: Hard Deadline for Foreign Exchange Receipts—April 30 of the Year Following the Customs Declaration

This is the key to ensuring a smooth refund. Article 48 of the new regulations clearly states: for export goods and overseas repair services for which taxpayers apply for export tax rebates (exemptions), the foreign exchange receipts should be received by u003cstrongu003eApril 30 of the following year after the customs declaration for exportu003c/strongu003e.

What if the foreign exchange is not received within this period? If it meets the circumstances listed in the 'Deemed Receipt of Foreign Exchange Reasons and Evidence Materials List', the taxpayer can retain the 'Export Business Foreign Exchange Receipts Status Form' and evidence materials, which will be deemed as receipt of foreign exchange. If the final date for full receipt of foreign exchange as stipulated in the export contract is originally after April 30 of the following year, the foreign exchange must be received within the contractual period, u003cstrongu003eand no later than 36 months from the date of customs declaration for exportu003c/strongu003e.

It is also important to note the handling according to Article 50: if the foreign exchange is not received as required, and the evidence materials are not retained as required, and the tax rebate (exemption) has not been processed, it will not be processed temporarily; if it has already been processed, the original declared data must be adjusted with a negative number in the month or the following month when the relevant situation occurs. The recovery of the tax rebate puts real pressure on cash flow.

Fourth, the third thing: keep the filing documents for ten years, don't discard them casually

Articles 45 and 46 of the new regulations clearly state that the documents for export tax rebate (exemption) filing shall be stored and kept by the taxpayer, u003cstrongu003enot to be destroyed without authorization, and the retention period is ten yearsu003c/strongu003e; enterprises can choose to retain the documents in paper, image, or digital form. When the tax authority requires the conversion of image or digital documents into paper for inspection, the enterprise must provide and stamp them as required.

In other words, the 'customs declaration documents of the current year' cannot be cleared after just a couple of years. It's worth doing some basic work now to archive the customs declarations, invoices, and transport documents by batch.

Fifth, several other common pitfalls

• u003cstrongu003eProcessing trade verification:u003c/strongu003e Production enterprises should apply to the competent tax authority for the verification of processing trade under the processing trade manual (account book) verified by the customs in the previous year by u003cstrongu003eApril 30 each yearu003c/strongu003e; if the verification is not applied for on time, the competent tax authority will u003cstrongu003etemporarily not process the export tax rebate (exemption)u003c/strongu003e, and will process it after the application for verification is made.
• u003cstrongu003eDo not issue special invoices:u003c/strongu003e For export business subject to VAT rebate (exemption) (except for water, electricity, and gas entering special zones), u003cstrongu003eVAT special invoices shall not be issuedu003c/strongu003e.
• u003cstrongu003eBe cautious about giving up:u003c/strongu003e If a taxpayer fully gives up the tax rebate (exemption) and chooses to be exempt from VAT or pay VAT, they shall not again apply for tax rebate (exemption) or exemption from VAT for u003cstrongu003ethirty-six monthsu003c/strongu003e after the waiver.
• u003cstrongu003eDo not forge vouchers:u003c/strongu003e If the provided VAT special invoice or other purchase vouchers are falsely issued or forged, or if the goods on the invoice do not match the actual sales, or if the amounts do not match, the policy will apply u003cstrongu003etaxationu003c/strongu003e, and the tax rebate will directly turn into a tax payment.

Sixth, the cost of non-compliance is heavier than you think

Article 61 of the new regulations clearly states that if a taxpayer fraudulently obtains national export tax rebates through false reporting of exports or other deceptive means, the tax authority will recover the fraudulently obtained tax rebates, u003cstrongu003eand impose a fine of one to five times the amount of the fraudulently obtained taxu003c/strongu003e; if it constitutes a crime, criminal responsibility will be pursued according to law. At the same time, the right to export tax rebates will be suspended based on the amount of the fraud: