New Challenges and Responses to Export Tax Rebate Tax Compliance in the Foreign Trade Industry in 2026

Export tax rebates, as an internationally accepted tax system, play a crucial role in the development of China’s foreign trade. It refers to the refund or exemption of value-added tax and consumption tax already paid in the domestic production and distribution stages for goods that have been declared for export, allowing exported goods to enter the international market at tax-free prices. This not only enhances product competitiveness but also avoids international double taxation. In recent years, the government has continuously optimized export tax rebate services. The processing procedures have been continuously simplified, and efficiency has been significantly improved. At the same time, measures such as paperless customs clearance, foreign exchange management reform, and facilitation of cross-border RMB settlement have been promoted in tandem, creating a more efficient and convenient business environment for export enterprises and effectively boosting foreign trade growth. However, while promoting development, China also adheres to strict supervision in its foreign trade sector. While enjoying the convenience of policies and services, enterprises face a compliance environment characterized by more precise regulation, stricter enforcement, and closer cross-departmental collaboration. At the policy level, the release of several policies, such as the “Regulations on Reporting Internet-related Tax Information” and the “Announcement on Optimizing Matters Related to Enterprise Income Tax Prepayment Declarations,” has had a profound impact on the foreign trade industry, especially cross-border e-commerce. In particular, the formal implementation of the Value-Added Tax Law and its implementing regulations at the beginning of 2026 has placed new demands on the compliance management of foreign trade enterprises. At the regulatory level, the joint efforts of multiple departments to combat tax fraud are constantly increasing. The State Taxation Administration, the Supreme People’s Court, and the Supreme People’s Procuratorate have repeatedly listed typical tax fraud methods such as “buying invoices to match payment records,” “overreporting low-value items,” and “circular exports” as key targets for crackdown. The technical means and collaborative mechanisms of tax supervision are also constantly being upgraded. Tax authorities have achieved more accurate monitoring and analysis of tax-related information through big data; the clue transfer mechanism of customs, foreign exchange management and other departments is becoming increasingly smooth, resulting in a significant increase in the number of tax audit cases initiated as a result. Therefore, proactively building and improving a tax compliance system has become an inevitable requirement for the sound operation and sustainable development of foreign trade enterprises. Based on continuous observation of the industry and extensive experience in handling tax-related cases, the Huashui team has written the “Export Tax Refund Tax Compliance Report for the Foreign Trade Industry (2026)”. This report systematically sorts out the types, high-incidence areas and causes of foreign trade tax risks, and, combined with typical cases, proposes actionable compliance suggestions and risk response strategies, aiming to help foreign trade enterprises prevent tax risks and achieve healthy and sustainable development. The report covers the development and tax supervision dynamics of the foreign trade industry in 2025, key tax risks and areas related to export tax rebates in the foreign trade industry in 2025, key points of administrative remedies for export tax rebates in the foreign trade industry, observations and analysis of criminal cases of export tax rebate fraud in the foreign trade industry in 2025, criminal defense strategies for export tax rebate fraud in the foreign trade industry, and tax compliance recommendations for the foreign trade industry in 2026.