Sure! Here’s the translation:
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**01**
The official confirmation states that exports from overseas warehouses must be counted as sales when sold overseas.
The "Operational Guidelines for Export Tax Refund (Exemption) for Cross-Border E-commerce Export from Overseas Warehouses" (hereinafter referred to as "the Guidelines") highlights two models for cross-border e-commerce export from overseas warehouses at the beginning:
It is clear that the second situation aligns closely with the actual circumstances of sellers utilizing overseas warehouses for cross-border e-commerce.
So, does this mean we will have to declare using the "Export Overseas Warehouse 9810" regulatory method in customs from now on?
In our previous article "Thoughts on the Practicality of 9810," we mentioned several issues that need to be addressed if we export using the "Export Overseas Warehouse 9810" method:
1. **Does the customs broker need to correspond one-to-one with the shop companies?**
For sellers with multiple shops, having multiple shop companies declare 9810 exports simultaneously can be quite troublesome. Moreover, since Amazon started using split shipments, many sellers have complained about having to divide a single shipment into multiple shipments, which complicates matters further, leading to smaller orders and requiring tax refund operations for each one. If there is also a need to ship from different shops simultaneously, it complicates matters even more.
Another question: goods are frequently allocated between shops overseas. Does this mean we need to record sales and purchases every time? How should we calculate the sales revenue? If there are frequent reallocations, it can become quite complex.
2. **When is revenue recognized? What amount is recognized?**
Is it recognized in the month of customs declaration or a few months later when the goods are sold in the overseas shop? Should revenue be recognized based on the full amount sold on the overseas platform or based on the amount received?
3. **How is the sales amount determined? How is the accuracy of this sales amount proven?**
Do we need to show the detailed order data from all shop backends to the tax authority? (What if a shop has both declared and undeclared items?) How do we match the monthly sales data with the original customs declaration documents? (If required, a detailed and clear inventory data set will be necessary to show which month's sales correspond to which customs exports. This is likely to be a headache for many sellers.)
After the goods are declared and leave the country, if there are losses at sea or damages/losses in the overseas warehouse, will we need evidence? (After all, if you declared 100 items for export but only sold 90, could it mean that 10 items were secretly sold without repatriation of the funds?)
4. **What price should be used for customs declaration? What if there are discrepancies in future payments?**
From what we understand, some sellers use the "expected amount to be received" as the customs declaration price, but will the tax authority recognize this? Additionally, if the actual amount received differs from the original customs declaration price, will this cause issues with the tax authorities? What percentage variation is considered acceptable?
5. **How to match supplier invoices with sales data?**
Since the export tax refund involves input tax, after determining the sales orders and amounts for the month, we need to match these sales orders with the corresponding supplier invoices. Is it possible to roughly check and match them in chronological order?
These are practical issues we may encounter. So, let's see if this time’s "Guidelines" can help clarify our doubts.
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**02**
**Details on Tax Refund Operations in the Guidelines**
I have browsed through the "Guidelines," and unfortunately, I did not find answers to the issues we mentioned above.
1. **When is revenue recognized? What amount is recognized?**
Although it states at the beginning:
"To support the development of new business formats in cross-border e-commerce overseas warehouses, the tax authority optimizes the tax refund management model. For overseas warehouse export goods under such circumstances, based on actual sales situations, companies can choose to declare tax refunds all at once or in batches. This means that companies do not need to wait until all goods from a batch have been sold before applying for a tax refund but can apply for a refund for the part of the goods that have already been sold."
— "Operational Guidelines for Export Tax Refund (Exemption) for Cross-Border E-commerce Export from Overseas Warehouses"
However, later in the section regarding the timing for applying for export tax refunds, it mentions:
(1) **Declaration Deadline**
Export enterprises from cross-border e-commerce overseas warehouses should declare and pay VAT in the month following the sale of the goods.
On the first day after the goods are declared for export (based on the "export date" marked on the export customs declaration), within the VAT declaration period for the following month, they can apply to the competent tax authority for export tax refunds (or exemptions); the latest application can be made during any VAT declaration period up to April 30 of the following year.
For foreign trade-type cross-border e-commerce overseas warehouse export enterprises, with the approval of the competent tax authority, they may also apply for export tax refunds (or exemptions) outside the VAT declaration period.
— "Operational Guidelines for Export Tax Refund (Exemption) for Cross-Border E-commerce Export from Overseas Warehouses"
The highlight of this section is: "For foreign trade-type cross-border e-commerce overseas warehouse export enterprises, with the approval of the competent tax authority, they may also apply for export tax refunds (or exemptions) outside the VAT declaration period."
The term "may" here carries a somewhat ambiguous meaning.
So, can cross-border e-commerce enterprises "apply" for tax refunds after sales in their shops, or is it "mandatory" to do so after sales in their shops?
- If it is "optional," does that mean applying for a tax refund in the month following customs declaration is also acceptable?
- If it is "mandatory," then we return to our previous questions about how to determine the customs enterprise, the declared amounts, and the recognized revenue amounts.
The "Guidelines" do not specify these practical operational details, so if cross-border e-commerce enterprises really declare exports using the "Export Overseas Warehouse 9810" model, it is likely that they will still face some disputes.
2. **When cross-border e-commerce enterprises apply for tax refunds, do they need to provide sales lists and inventory data for overseas shops?**
The "Guidelines" mention the documents required for export tax refunds for cross-border e-commerce enterprises and the document filing list that enterprises must keep:
**Filing List:**
**I. Documents to be submitted when applying for tax refunds**
When foreign trade enterprises declare VAT exemption and tax refunds, they should provide electronic data for the declaration along with the following form documents:
A. "Detailed Declaration Form for Export Tax Refunds of Foreign Trade Enterprises";
B. "Detailed Declaration Form for Export of Foreign Trade Enterprises";
C. Export customs declaration, special VAT invoices, customs special payment vouchers, etc. For entrusted export goods, they should also provide proof of export issued by the entrusted party's competent tax authority.
**II. Documents that enterprises must keep on file**
1. Purchase and sales contracts of the export enterprise (including: export contracts, comprehensive foreign trade service contracts, purchase contracts for foreign trade enterprises, contracts for the purchase of goods exported by manufacturing enterprises, etc.);
2. Transportation documents for export goods (including: sea waybills, air waybills, railway waybills, cargo transport documents, postal receipts, domestic transportation invoices paid by export enterprises, and invoices for international cargo transportation agency service fees paid by export enterprises, etc.);
3. Documents for customs declaration entrusted to other units (including: customs declaration agreements, invoices for agency customs declaration services issued by the entrusted customs declaration unit, etc.).
In practice, if enterprises cannot obtain the aforementioned documents, they can use other documents with similar content or function for documentation filing.
For those familiar with export tax refund operations, this is precisely the documentation required for traditional foreign trade export tax refunds, right? Yes! This is the traditional checklist for 0110 foreign trade documentation, and even the "purchase and sales contracts of the export enterprise" only mention "export contracts" without addressing the overseas shop lists we discussed.
The final statement, "If enterprises cannot obtain the aforementioned documents, they can use other documents with similar content or function for documentation filing," was actually mentioned in a document released back in 2022: "Announcement No. 9 of the State Administration of Taxation of 2022 on Further Facilitating Export Tax Refunds and Promoting Stable Development of Foreign Trade."
For cross-border e-commerce overseas warehouse export enterprises, what exactly are the "alternative" documents? Unfortunately, this "Guidelines" does not clarify.
3. **What if there are discrepancies between actual receipts and customs declaration amounts? How will tax matters be handled? What range of discrepancies won't affect subsequent tax refunds?**
Regarding the receipt regulations, this "Guidelines" states:
**Requirements for Submitting Receipt Materials**
In principle, enterprises do not need to submit receipt materials when declaring export tax refunds (or exemptions) but should keep evidence materials for reference. If the tax authority requires verification of receipt conditions, enterprises should submit receipt materials as required.
Enterprises must submit receipt materials simultaneously when declaring tax refunds (or exemptions) under the following special circumstances:
(1) For enterprises classified in Category 4 for export tax refund (or exemption) management.
(2) Enterprises declaring export tax refunds (or exemptions) after the deadline for declaration.
(3) If the tax authority discovers that receipt materials submitted by the enterprise are false or fraudulent, they must submit receipt materials (specifically, the "Export Goods Receipt Statement
