[Freight Class] Pay attention! Although the export tax rebate declaration period is relaxed to 36 months, if the declaration is not made within the deadline, the full tax will still be faced!

Recently, the Ministry of Finance and the State Administration of Taxation jointly issued the 'Regulations on the Implementation of the Value Added Tax Law (Draft for Comments)', one of which is a major change worthy of the attention of all export companies: From January 1, 2026, export companies must complete tax refund or tax exemption declaration within 36 months from the date of customs declaration and export of goods. Once the period exceeds the deadline, the tax that could be refunded may be 'wasteful' and even the taxes must be paid according to domestic sales business.

1. Why should we set up a '36-month red line' for export tax rebates?

This new regulations were not suddenly introduced, but an inevitable move by the country to plug tax loopholes. Previously, the operations of some export companies have put tax supervision in trouble:

• Production enterprises 'Exemption' additional tax loophole : Some manufacturers do not declare export customs declaration forms for a long time due to insufficient input items and no tax refund after paying domestic sales, resulting in the loss of additional taxes that should have been paid at 'Exemption' level.

• Trading companies'Invisible' deduction : Some trading companies cannot refund taxes because the purchase invoice is not in compliance, but do not make tax exemption declarations. Instead, they use the corresponding input to deduct domestic sales and sales, or directly conceal export income.

• The management vacuum for non-receiving foreign exchange business : For businesses that cannot be collected, enterprises will neither deal with tax exemptions nor declare, resulting in long-term tax loopholes.

The new regulations directly hit these pain points, and the core requirements are simple but strict: all export customs declaration forms must be 'light' within 36 months - either tax refund or tax exemption. If neither choice, tax must be paid according to domestic sales.

This is not an isolated policy adjustment, but a key measure for the country to rely on the 'Fourth Golden Taxation Phase' system to integrate data from multiple parties such as customs, taxation, and foreign exchange to further strengthen tax collection and management and plug loopholes.

2. Core changes in the new regulations

The 'Regulations on the Implementation of the Value Added Tax Law (Draft for Comments)' achieves multi-dimensional innovation in export tax rebate management, and enterprises need to focus on these key adjustments:

1.36 months declaration limit

Exporting enterprises must complete tax refund or tax exemption declaration within 36 months from the date of customs declaration and export of goods. Otherwise, they will be deemed to be paid as domestically sold goods at a tax rate of 13%, and may face late payment fees and fines.

Special attention: If goods exported in 2023 and beyond are not processed in a timely manner, they may be close to or exceed the 36-month period and must be inspected immediately.

2. Strengthen exchange collection management

Export companies must complete tax refund (exemption) declaration before April 30 of the following year and submit foreign exchange receipts. Excess declaration requires additional foreign exchange collection materials and may be considered abnormal transactions.

3. Give up tax exemption = locked for 36 months

If an enterprise voluntarily waives its right to exempt tax, it must file in writing and shall not apply for tax exemption within the next 36 months. The actual impact period is long and it must be decided carefully.

4. Taxes are required to be added to the return or discount

If exported goods are returned or discounted in sales, the company must pay the tax refunds it has received. Note: Quality deduction ≠ sales discount, and the tax treatment method is different.

5. Clarify the tax obligation time: the customs declaration date shall prevail

In view of the 'customs declaration first and then payment' model, enterprises can no longer delay the recognition of revenue according to the payment time, and must confirm sales on the day of customs declaration and fulfill tax obligations.

6. Extended export definition expansion of zero tax rate range

Exported goods are defined as exporting from traditional departures to situations specially stipulated by the State Council (such as the departure of goods in special supervision areas, etc.).

3. The main risks facing enterprises

1. Historical customs declaration form 'Thunder'

Customs declarations for exports from 2023 to 2025 but without tax refund or tax exemption may be approached or exceeded by the 36-month period by the time the policy is implemented in 2026. If not processed, they will face tax reimbursement directly.

For example:

The goods declared in January 2023 will expire in July 2026;

The goods declared in January 2024 will expire in July 2027.

2. Invoice issues block tax refunds

If a false VAT invoice is obtained (even if it is 'acquisitioned in good faith'), it cannot be used for tax refunds, and a legal and valid invoice must be re-acquisitioned.

3. Hiding income is no longer feasible

In the past, some companies did not declare or transfer the export items, but instead deducted domestic sales and sales items. This type of operation will be easily recognized by the system under the fourth phase of the gold tax, and faced tax replenishment + late payment fees + fines.

4. The long-term shackle of giving up tax exemption

If an enterprise chooses to waive tax exemption, it must apply in writing and file it, and it shall not apply for tax exemption within 36 months after waived (calculated in the actual month, non-natural year).

For example, tax exemption will be waived in January 2025, and the ban will continue until January 2028.

4. Four suggestions for self-rescue buffer period in 2025

With less than five months left before the implementation of the new regulations, it is currently a golden window for enterprises to sort out their historical business and avoid risks. Recommended to act immediately:

1. Comprehensive self-inspection of customs declaration form and classified processing

Sort through all export data since January 1, 2023 and establish a ledger.

If you can get a tax refund , you will give priority to the customs declaration form that is close to the 36-month period and seize the final declaration opportunity;

If you cannot refund the tax but meet the tax exemption conditions , you will immediately make a tax exemption declaration to avoid passive tax reimbursement;

If you cannot refund or exempt tax , you will take the initiative to apply for tax payments based on domestic sales to reduce the risk of late payment fees and fines.

2. Be cautious'Give up tax exemption'

Carefully evaluate the business and tax impacts in the next 36 months, and do not easily give up tax exemption unless necessary。

3. Accelerate the management of documents and exchange collection

It is recommended to establish a document warning mechanism and organize customs declaration forms, exchange receipts and other materials in advance to avoid overdue payment.

4. Strengthen supplier invoice management

Strictly review the source of input invoices to ensure that the goods, invoices and payments are consistent, and prevent the acquisition of false invoices from affecting tax refunds.

In addition to emergency remediation, enterprises should also fundamentally optimize the fiscal and taxation process:

• Set up tax review points in various links such as contract, customs declaration, foreign exchange receipt, and accounting;

• Establish a supplier review and invoice verification mechanism;

• Improve the response process for returns and sales discounts;

• Pay close attention to the implementation rules of local tax authorities.

Source: Xinjiang Sanhe International | If there is any infringement, please contact us to delete it