Export business of foreign trade enterprises can apply for export tax refund (exemption) under the conditions that meet the relevant provisions, which is a preferential policy of the state in order to encourage the export of foreign trade. However, the foreign trade enterprises may also be due to improper choice of suppliers, while facing the risk of not being able to refund! See a case of popular science!
 

A trading company A, a foreign trade export enterprise founded by Mr. Xiao, declared an export tax rebate on January 10, 2017. Tax officers sent a letter to its supplier B Industry Co., Ltd. on February 14, 2017 for investigation.

B Industry Co., Ltd. rescheduled the letter on March 10, 2017, which indicated that B Industrial Co., Ltd. determined the general taxpayer on April 1, 2015 and canceled it on November 14,

On May 19, 2017, the tax officer sent a notice of tax matters to Mr. Hsiao informing him that for the export business of A Trade Co., Ltd. from May 22, 2017 to May 21, 2019, the applicable value-added tax refund ) Tax policy of goods and services to VAT policy to apply tax exemption.

Mr. Xia this hurry: "The situation of suppliers will also affect my business to declare the export tax rebate ah?

A Trade Co., Ltd. supply taxpayers B Industrial Co., Ltd., is recognized as VAT general taxpayer cancellation of tax registration within 2 years, and Company A VAT invoices issued by the company B to declare the export tax rebate for 12 consecutive months (November 2015 - October 2016) reached 2,093,953.12 yuan (more than 2 million yuan).

According to relevant regulations, since the date of the written notification by the taxation authority, the goods labor services that are exempted from the VAT refund (exemption) policy that are exported within 24 months shall be subject to the VAT exemption policy.
Relevant documents
According to the Circular of the Ministry of Finance and the State Administration of Taxation on Certain VAT Value-Added Tax Policies on Preventing Tax Risks (Cai Shui [2013] No. 112), among the tax-paying suppliers of goods purchased by export enterprises, taxpayers who belong to the tax registration within 2 years are recognized by the tax authorities as Non-normal households or taxpayers who are deemed to be VAT canceled within 2 years and meet the following conditions, since the tax authorities in charge of their export tax rebates written notice of the date, the applicable value-added tax within 24 months of export Refund (exemption) tax policy of goods and services, tax policy to apply VAT.

(1) Foreign trade enterprises shall declare the export tax rebate by using the special VAT invoice issued by the above-mentioned supplying taxpayers and reach the amount of over 2 million yuan (including the above, the same below) within 12 consecutive months, or use the aforesaid supplier's taxpayers VAT invoices, for a continuous 12 months to declare the amount of tax rebates in the period covered by all the tax rebate of more than 30%;

(2) The manufacturing enterprise declares that the export tax rebate amount has reached over 2 million yuan within 12 consecutive months and the tax on special VAT invoices obtained from the above-mentioned supplier taxpayers reaches over 2 million yuan or over 30% of the total input tax amount during the period of;
 
(3) Foreign trade enterprises use 3 special VAT rebates issued by the aforesaid supplying taxpayers within 12 consecutive months, and make up 20% of the total number of suppliers of taxpayers in that period;

(4) There are 3 or more above-mentioned suppliers of taxpayers in production enterprises within 12 consecutive months, accounting for more than 20% of the total number of taxpayers who supply them during the period.
Tax refund tips
Export links many, from the purchase of goods to the declaration of exports, from the tax rebate to assess the assessment and verification, such as its suppliers do not match their qualifications, abnormal production capacity, the input is not true and so will affect the tax rebate can not be ignored.