Can I get a tax refund on the fob price? Is there any shipping fee?

FOB is the price on board. Under FOB terms, the seller needs to bear the risks and costs, and is also responsible for handling export formalities. FOB costs include processing, packaging, storage and other costs. Can FOB prices be refunded?

Can

1. Does the fob price include shipping costs?

It includes freight. If there are a lot of goods or the profit is high, domestic costs can be ignored. If there are fewer goods, the price needs to be increased accordingly, because the unit cost has increased a lot. The unit cost mainly includes: inland freight (factory to port or container warehouse), loading and unloading fees (especially some goods that cannot be loaded and unloaded mechanically), LCL fees, terminal fees, customs clearance fees, inspection fees, etc.

2. To whom does the fob tax refund belong?

The factory bears the tax. FOB is the free on board price. The tax refund should not be the responsibility of the buyer. The price you quoted already includes the tax. Then your buyer will also have to pay the tax when importing to his country, but he is responsible for it. The tax for export should be borne by your factory.

3. What is export tax rebate?

Export Rebate, also known as export tax rebate, basically means the refund of the value-added tax and consumption tax actually paid in the domestic production and circulation links of exported goods. The export tax rebate system is an important part of a country's tax revenue.

Export tax rebates are mainly used to balance the tax burden of domestic products by refunding domestic taxes paid on exported goods, allowing domestic products to enter the international market at tax-free costs and compete with foreign products on the same terms, thereby enhancing competitiveness and expanding export earnings.

The state stipulates that the goods exported by foreign trade enterprises must meet the following four conditions at the same time:

(1) The goods must be subject to value-added tax or consumption tax.

(2) The goods must be declared for export.

(3) The goods must be financially treated as exported goods.

(4) The goods must have been paid for and written off.

When applying for a tax refund on exported goods, production enterprises (production enterprises with import and export rights, production enterprises that entrust foreign trade enterprises to act as export agents, and foreign-invested enterprises) must add one condition, that is, the goods for which the tax refund is applied must be the production enterprise's own products or deemed to be self-produced goods in order to apply for a tax refund.

In summary, the fob price is tax-refundable. If you declare the goods for export yourself, you can get a tax refund. If the tax refund rate is 17%, the VAT factor can be excluded.