China Export VAT Refund Calculator
Exporters in China do not simply get all input VAT back. Under the exempt, offset and refund method, the gap between the levy rate and the refund rate becomes a real cost. This calculator shows that cost and the refund you can expect for one period.
Your numbers
Customs FOB value of the shipment declared for the period.
The exchange rate your tax bureau accepts for the period.
Materials and services bought domestically for these exports, tax excluded.
Check the current refund rate for your HS code. Rates differ by product.
Your results
Simplified single-period model with no domestic sales, no opening credit and no bonded material offset. Actual filings follow the current State Taxation Administration rules and your local bureau. Confirm with your tax advisor.
Refund and non-deductible VAT vs refund rate
Sweeps Export refund rate from 0 to 13, holding your other inputs fixed.
Export margin report from your ERP
Optional: we can review how your ERP costs non-deductible export VAT and build a margin report by product.
Optional. The tool and every export work without this. No spam.
How to use the calculator
Enter the FOB value in USD, the tax exchange rate, and the domestic purchase cost excluding VAT. Pick the VAT levy rate (13 percent for most goods) and set the refund rate that applies to your HS code. The result shows the refund, the carry-forward credit and the margin after the non-deductible VAT. Use the slider to see how a refund rate cut changes margin. Run it per product family if rates differ, because one blended rate hides the products that lose money.
The method behind the numbers
Non-deductible VAT equals export value times the difference between levy rate and refund rate. The refund ceiling equals export value times the refund rate. The refund paid is the lower of that ceiling and the period's creditable input VAT. Any remaining input VAT carries forward. The part of the ceiling not paid in cash is the offset against domestic output VAT. This model assumes no domestic sales, so offset is zero.
- Non-deductible VAT = FOB in CNY x (levy rate - refund rate)
- Ceiling = FOB in CNY x refund rate
- Refund = min(ceiling, creditable input VAT)
- Carry forward = creditable input VAT - refund
Reading results and common mistakes
If creditable input VAT is below the ceiling, your purchases were too low or too cheap relative to the export price, so you are not getting the full ceiling. That often points to a missing supplier invoice or a pricing problem. Common mistakes include using the wrong exchange rate, ignoring bonded material imports that need a separate offset, and forgetting that the non-deductible portion must be costed in your ERP. In Kingdee or Yonyou, make sure the cost accounting picks it up so product margin reports are honest.
Frequently Asked Questions
Is the refund always equal to refund rate times FOB?
No. The refund is capped by creditable input VAT in the period. If your purchase invoices are lower than the ceiling implies, the paid refund is lower and the remainder is not refunded. Domestic sales also use part of the credit through offset.
Where does non-deductible VAT go in the accounts?
It is generally treated as part of cost of sales for the exported goods, not as a recoverable tax. Your accountant should confirm the exact posting under current Chinese accounting standards.
Do refund rates change?
Yes. The government adjusts refund rates by product from time to time. Always look up the current rate for your HS code before quoting or pricing, and re-run the margin when rates change.
Does this work for trading companies?
Not exactly. Trading companies normally use the exempt-and-refund method with refund based on purchase cost and invoice value, not the offset model. This tool targets production enterprises using exempt, offset and refund.
If your ERP does not post non-deductible export VAT to product cost, we can help design the cost rule and a margin report that includes it.
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