Cup Makers (Exemption, Credit & Refund) vs. Trading Companies (Exemption & Refund) – What's the Diff in Tax Rebate Filing? (Part 2)

Every cup holds a story; every life deserves warmth. Hello everyone, this is "Dong Dong's Cup Talk".I have just shared about export tax rebate applications for cup manufacturers and foreign trade traders. I’d like to strike while the iron is hot and share everything I know in one go while I’m still in this sharing mood.

Under the new official policy effective January 1, 2026, document-buying exports for cup exporters will become far more difficult. Many cup exporters, especially business owners, may ask: how else can we make profits without this practice? The current foreign trade environment is tough. https://www.umbottle.com/ProductsDetail-VB-10529.html The RMB is appreciating, and profit margins keep shrinking. If we have to follow formal customs declaration rules, file VAT returns and are unable to secure tax rebates, we would be losing money on every order. So this sharing is especially relevant for friends facing these concerns.

Differences in Invoice Marking and Input Tax Matching

For foreign trade trading companies: After obtaining VAT special invoices for finished cups issued by upstream manufacturers, traders mark these invoices as Rebate Checked on the VAT Invoice Comprehensive Service Platform. When filing for rebates, two-way matching between purchase details and export details is required. https://www.umbottle.com/ProductsDetail-VB-10529.htmlEach finished-good input invoice must be linked one-to-one with its corresponding customs declaration form, known as “one invoice for one declaration”. Product name, material, specification and quantity must be consistent. The rebate amount is calculated as the tax-exclusive amount stated on the VAT special invoice multiplied by the applicable rebate rate.

For cup manufacturers: Input invoices for raw materials such as stainless steel sheets, plastic pellets and sealing rings are all marked as Deduction Checked and merged into the enterprise’s overall input tax pool. Manufacturers do not need to match raw material input invoices individually against each export customs declaration. The tax base for rebate calculation is the FOB value shown on the customs declaration. https://www.umbottle.com/ProductsDetail-VB-10529.htmlThe system automatically calculates the theoretical ECR amount as FOB value × rebate rate. This figure is then compared against the current-period excess input tax credit; the smaller of the two values will be the refundable amount for the period. The remaining portion is the exemption-and-credit amount, on which surcharge taxes shall be accrued.

Here is an example to help you understand: for the same shipment of 750ml stainless steel cups, the trading company calculates the rebate based on the purchase invoice value, while the manufacturer calculates the theoretical rebate amount using the FOB customs value. https://www.umbottle.com/ProductsDetail-VB-10529.htmlThe actual final rebate depends on whether there is excess input tax credit available for the period.

There are stories in the cup, life has warmth, use a good cup to enjoy a healthy life. We provide OEM business to more than 100 companies around the world, and produce more than 3 million pieces of various stainless steel/plastic cups and pots annually. Honoring promises, keeping reputation, ensuring quality and quantity, and delivering on time are our service principles and our professional commitment. Dongguan Zhan Yi Commodity Technology Co.,Ltd. welcomes global merchants to conduct on-site factory inspections and in-depth cooperation.