Industry Research: Interpretation of the latest export B2B foreign exchange refund policy! Is it affected by the tariff war?

In today's highly competitive international business environment, it is crucial to understand the impact of the latest foreign trade B2B settlement and tax refund policies on enterprises. First, let's look at an interesting fact: According to a recent report, more than 60% of foreign trade B2B companies are directly affected by policy changes every year. This shows the importance of these policies to the industry.

Overview of the latest foreign trade B2B settlement and tax refund policies

According to the official announcement, the latest foreign trade B2B settlement and tax refund policies are aimed at simplifying the process, improving efficiency and supporting the development of foreign trade enterprises. For example, some policies have simplified the information required for tax refunds. Previously, enterprises needed to submit up to 10 different types of information, but now it has been reduced to 5, which greatly saves the time and resources of enterprises.

Settlement related : Foreign trade B2B settlement is usually carried out through bank transfer, letter of credit, etc. In cross-border e-commerce B2B transactions, foreign exchange is also collected through third-party payment platforms. Enterprises need to ensure that the collection channel is compliant and the foreign exchange amount is consistent with the customs declaration form to meet subsequent business requirements such as tax refunds.

Tax refund policy :

9710 tax refund model : The enterprise must be a general taxpayer of value-added tax, have the right to import and export and complete the record of export tax refund (exemption), complete B2B transactions through cross-border e-commerce platforms, and export goods actually leave the country and obtain the tax refund special copy of the customs declaration. At the same time, the customs declaration, logistics order, and payment order must be consistent, and supporting materials such as platform transaction records must be provided. Production enterprises must ensure that production capacity matches export scale. Foreign trade enterprises need to provide purchase invoices that match the customs declaration, and production enterprises need to ensure that the input invoices are consistent with the production ledger. Tax refunds can be made in batches, the declaration cycle is shortened, and online declarations can be made through the electronic tax bureau or the single window. The review can be completed within 3 working days at the fastest. Small and micro e-commerce companies can handle foreign exchange receipts and payments with electronic transaction information and are exempt from directory registration.

9810 tax refund : For goods exported from overseas warehouses with the customs code "9810", tax refunds can be applied for after leaving the country, which was originally required to be declared after actual sales. The advance tax refund will be credited to the account within 3 days at the earliest, and the actual sales will be "refunded or supplemented" later. When taxpayers export goods by exporting overseas warehouses, they can distinguish between goods that have not been sold and goods that have been sold after the goods have been declared and leave the country based on the relevant materials such as the export goods declaration form, and make export tax refund and export tax refund (exemption) declarations respectively; if no distinction is made, the goods will be deemed to have not been sold, and the export tax refund declaration will be made uniformly. The accounting period ends on April 30 of the following year, and the amount will be recovered if it is not completed after the deadline.

Impact on cross-border businesses

1. Financial impact

The tax rebate policy can directly increase the cash flow of enterprises. For example, a medium-sized foreign trade B2B enterprise that exports electronic products used to receive a tax rebate of about $100,000 per year. After the new policy adjustment, the tax rebate rate has increased by 2 percentage points, which means that the enterprise can receive an additional $20,000 in tax rebates each year. This additional money can be used for research and development, expanded production or marketing activities, helping enterprises gain a competitive advantage in the international market.

2. Operational impact

The new policy simplifies the settlement process and reduces the administrative burden on enterprises. In the past, it usually took a clothing export company about 20 working days to handle settlement, including document preparation, submission, and approval. After the implementation of the new policy, the settlement process was shortened to 10 working days, enabling enterprises to respond to market changes faster, place new orders, and improve customer satisfaction.

3. Impact on competitiveness

Companies that can better adapt to the new policy will have a stronger competitive advantage. For example, a furniture export company actively adjusted its business model according to the new tax rebate policy, and increased its European market share from 10% to 15% within one year by optimizing its product structure and focusing on products with high added value and higher tax rebates.

Is the latest tax refund/foreign exchange refund policy affected by the tariff war?

Tax refund policy : The tariff war may have an indirect impact on the tax refund policy. On the one hand, in the context of the international tariff war, in order to support domestic enterprises in coping with external pressure, the government may reduce enterprise costs and enhance the competitiveness of enterprises by optimizing tax refund policies. For example, China’s “tax refund upon departure” policy has accelerated the tax refund process and allowed enterprises to obtain funds in advance, which to a certain extent alleviates the cost pressure on enterprises caused by tariff increases. 2 On the other hand, the tariff war may lead to changes in the scale and structure of trade. The government will adjust the scope of application and tax refund rate of the tax refund policy according to the actual situation to better adapt to the new trade pattern and promote the adjustment and optimization of the industrial structure.

In terms of exchange refund policy : the tariff war may lead to an increase in trade disputes, which in turn will lead to an increase in exchange refunds. Due to increased tariffs and other reasons, the importer's costs may rise, and the demand for goods and quality may change, which may easily lead to conflicts and disputes between the two trading parties, so that export companies may face more exchange refunds. When formulating exchange refund policies, the foreign exchange management department will also take into account the impact of external factors such as tariff wars on trade, and may pay more attention to authenticity and compliance audits in supervision, in order to ensure the normal exchange refund needs of enterprises, and prevent enterprises from using exchange refunds and other methods to conduct illegal capital flows or evade tariffs.

in conclusion

The latest foreign trade B2B settlement and tax refund policies have a far-reaching impact on cross-border enterprises, not only bringing direct economic benefits, but also improving operational efficiency and enhancing competitiveness. Enterprises need to understand these policies in a timely manner, adapt to changes, and make full use of the opportunities brought by the policies.

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