Cup Makers (Exemption, Credit & Refund) vs. Trading Companies (Exemption & Refund) – What's the Diff in Tax Rebate Filing? (Part 5)
There are stories in cups and warmth in life. Hello everyone, this is "Dong Dong's Cup Talk". I just shared the export tax declaration for cup manufacturers and foreign trade traders. I want to strike while the iron is hot and share everything I know while I’m still on a roll.
Under the new national regulations effective January 1, 2026, “danmai export” (declaration buying) will become much harder for cup exporters. Many cup export business owners may wonder: How can we make profits without buying declarations? https://www.umbottle.com/ProductsDetail-VB-10347.htmlThe foreign trade climate is tough right now. The RMB is appreciating and profit margins keep shrinking. If we follow formal customs declaration and VAT filing but fail to secure tax refunds, we will be taking orders at a loss. So everyone facing these issues, please pay close attention to the following sharing.
Tax Refund Calculation Logic Directly Affects Declaration Outcomes
Foreign Trade Trading Companies: Exemption and Refund
Export sales are exempt from output VAT. Refund is granted on the input VAT corresponding to purchased finished goods. https://www.umbottle.com/ProductsDetail-VB-10347.htmlTransactions are accounted for separately order by order. Issues with one order will not affect tax refunds for other orders.
Manufacturing Factories: Exemption, Credit and Refund
Export sales are exempt from output VAT. Input VAT is first used to offset VAT payable on domestic sales. Any remaining input VAT after offsetting qualifies for refund.
Key feature: Input VAT from all domestic and export sales is pooled together. If monthly domestic output VAT is high, all input VAT will be consumed for offsetting. https://www.umbottle.com/ProductsDetail-VB-10347.htmlNo cash refund will be generated in that period, only exemption-and-credit amount. Refunds are only available when there is VAT overpayment carried forward on the books. An irregular transaction may impact the overall exemption, credit and refund calculation of the whole enterprise.
Document Filing for Record (Same requirements for both, different filing purposes)
New 2026 rule: Prepare the record document catalogue within 15 days after declaration; documents must be retained for 10 years.
• Trading companies: Documents serve as proof of finished goods procurement and export shipment. Procurement contracts are the priority for retention.
• Manufacturing factories: https://www.umbottle.com/ProductsDetail-VB-10347.htmlDocuments prove that exported goods are self-manufactured. Apart from export contracts, production ledgers and related records must also be kept for input-output verification.
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.