Secrect Of Export Tax Refund In China

China raise the export tax rate from 5% to 9% for the ceramics products. So the export price will decrease 3.41% than before. But many clients complain that why is only 3.41% instead of 4%. Because 9%-5%=4%.

China raise the export tax rate from 5% to 9% for the ceramics products. So the export price will decrease 3.41% than before. But many clients complain that why is only 3.41% instead of 4%. Because 9%-5%=4%.

In order to make it clear, I have to explain it in my Blog.

There is 17% value-added tax in all products in China. When you buy USD100 goods in China, there is two parts value inside. The goods value is USD85.47, the value-added tax value is USD14.53. Because USD85.47 * 1.17 = USD100

The most important thing is that "The tax refund bases on USD85.47. "

SoUSD85.47 * (9%- 5%) = USD3.41 , Every USD100 can deduct USD3.41, it means the price will decrease 3.41% than before.