Exemption, Offset and Refund is a major administrative measure for China's export tax rebate, with the full name 'Exemption, Offset and Refund'. Exemption means that the VAT on self-produced goods exported by production enterprises is exempted at this stage; Offset means that the input tax contained in raw materials, parts, etc. consumed for export goods is used to offset the tax payable on domestic sales; Refund means that when the tax payable on domestic sales in the current month is insufficient for offset, the remaining unoffset portion is refunded. This term applies to export enterprises with production capacity (production enterprises), not to foreign trade enterprises (foreign trade enterprises apply 'Exemption and Refund'). Usage scenario: Enterprises must declare within the prescribed period after export and obtain documents such as export customs declaration forms and invoices. Precautions: The calculation of Exemption, Offset and Refund is complex, and it is necessary to distinguish the 'amount not exempted and not offset in the exemption, offset and refund', and when the refund rate is inconsistent with the levy rate, input tax transfer-out is required. Difference from other terms: Exemption and Refund applies to foreign trade enterprises and directly refunds input tax; Exemption, Offset and Refund first offsets and then refunds, and is linked with domestic sales business.
📝 Examples
1. Our company is a production enterprise. This month we exported a batch of self-produced clothing and declared under the Exemption, Offset and Refund method. After tax review, the exempted and offset amount was 50,000 yuan, and the refundable amount was 30,000 yuan. (Note: For production enterprises exporting self-produced goods, Exemption, Offset and Refund applies; first calculate the exempted and offset amount, then determine the refund amount.)
2. Because the output tax on domestic sales in the current month was relatively large, all input tax on the company's export goods was used to offset the tax payable on domestic sales, so there was no refund, only an exempted and offset amount. (Note: In Exemption, Offset and Refund, if the tax payable on domestic sales is large enough, there is only offset and no refund, reflecting the role of 'offset'.)
💡 Foreign Trade Tips
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