Bottom line: Export tax rebate returns the VAT (and some consumption tax) paid during domestic production/distribution before export. Rebate rates range from 0% to 13% by HS code. Use FOB × rebate rate to quickly estimate the refundable amount.
When goods are exported, the VAT paid during domestic production and distribution (sometimes also consumption tax) can be refunded. The purpose is to let Chinese goods compete internationally at "tax-excluded" prices. What's refunded is domestic tax, not the importing country's tax.
The rebate rate is determined by the HS code. Common tiers (illustrative):
| Tier | Typical Categories |
|---|---|
| 13% | Most machinery, electronics, some furniture |
| 9% | Some light industry, textiles and apparel |
| 6% | Some chemicals, building materials |
| 0% | Categories with cancelled rebate or exempt-but-not-rebated |
For specific rebate rates, check your HS code in HSBot or refer to State Taxation Administration announcements.
Standard formula: Rebate amount = Purchase price including tax ÷ (1 + VAT rate) × Rebate rate
Simplified estimate (common for trading companies): Rebate amount ≈ FOB amount in RMB × Rebate rate
Example (illustrative): Wooden chairs FOB $10,000 ≈ ¥72,000, rebate rate 13% → Refundable: ¥72,000 × 13% = ¥9,360
HSBot supports China export rebate lookup: enter an HS code to get the rebate rate and estimated refundable amount, helping you factor cost savings into your pricing.