How to Get a Tax Refund at Canton Fair?

By Yaurapulse

Pricing, MOQ & Negotiation

You are at the Canton Fair and you have placed an order. You wonder: can I get a tax refund? The answer depends on what kind of tax refund you are talking about.

There are two types of tax refunds relevant to Canton Fair buyers:

  1. China's export tax rebate - this is given to the Chinese supplier, not to you directly. But it indirectly lowers the price you pay.
  2. China's departure tax refund for foreign tourists - this applies to goods you buy and take with you when you leave China.

This guide explains both types, how they work, and how you as an overseas buyer can benefit.

Can overseas buyers get China's export tax refund directly?

No. China's export tax rebate is a government policy that refunds the input VAT (value-added tax) paid by Chinese exporters. It is paid to the Chinese supplier, not to the overseas buyer.

Here is how it works:

  • When a Chinese factory buys raw materials, it pays 13% VAT.
  • When the factory exports the finished goods, the government refunds part or all of that VAT to the factory.
  • The refund rate varies by product: 5%, 9%, 11%, 13%, or 17%.

Why does this matter to you? Because the export tax rebate lowers the supplier's cost, and the supplier can pass this savings on to you through a lower price. In fact, many Chinese suppliers build the export tax rebate into their pricing strategy. Some suppliers even sacrifice part of the tax rebate to offer you a lower price and win your order.

Important: The export tax rebate is the supplier's money. You do not apply for it. The supplier applies for it after the goods are exported. What you get is a lower price because the supplier can afford it.

How does the export tax rebate affect the price you pay?

When negotiating at the Canton Fair, you may hear suppliers quote two prices:

  • Tax-inclusive price: The price includes VAT. This is the price for domestic Chinese sales.
  • Tax-exclusive price: The price without VAT. This is the export price.

For export orders, suppliers usually quote the tax-exclusive price because they will get the export tax rebate. This means the price you pay at the Canton Fair is already lower than the domestic Chinese price.

Example: If a product costs 113 RMB (including 13% VAT) in China, the tax-exclusive price is 100 RMB. For export, the supplier may quote you 100 RMB or even less, because they can claim a VAT refund of 13 RMB (or whatever the product's refund rate is).

My advice: Always ask whether the quoted price is the export price (tax-exclusive). For export orders, you should not pay Chinese VAT.

What is the departure tax refund for foreign tourists?

If you buy goods in China and take them with you when you leave (not by sea freight export), you may be eligible for China's departure tax refund. This is different from the export tax rebate.

How it works:

  • Foreign tourists who buy goods at designated tax-refund stores can get a VAT refund when they leave China.
  • The refund rate depends on the product's VAT rate:
  • Products with 13% VAT: refund rate is 11%
  • Products with 9% VAT: refund rate is 8%
  • You need to get an invoice from the store and apply for the refund at the airport or port when you depart.

Can you use this for Canton Fair orders? Generally, no. The departure tax refund is for personal shopping (retail purchases you take with you on the plane). It does not apply to bulk export orders shipped by sea or air freight.

However, if you buy samples or small items at retail markets in Guangzhou (like Huaqiangbei electronics market) and take them with you on the plane, you may be able to claim the departure tax refund.

How to claim the departure tax refund:

  1. Shop at a designated tax-refund store. Look for the tax refund store sign. Ask the shop whether they can issue a tax refund invoice.
  2. Get the tax refund form. The store will give you a tax refund form with your purchase details.
  3. Keep the goods with you. Do not ship the goods by freight. You must take them with you when you leave China.
  4. Apply at the airport. At the departure airport, go to the customs office to get the tax refund form stamped. Then go to the tax refund counter to collect your refund (in cash, by credit card, or by bank transfer).

TIP: When buying at retail markets like Huaqiangbei, ask if the price includes tax and whether they can provide an invoice. With an invoice, you may get a tax refund at departure.

What taxes do you pay in your own country?

While you do not pay Chinese VAT on export orders, you will need to pay import duties and taxes when the goods arrive in your country. These are separate from any Chinese tax refund.

The import taxes you pay depend on your country and the product type. Here is how they are typically calculated:

1. Customs duty (tariff): Based on the HS code of your product and the customs value. Duty rates range from 0% to 30% or more.

2. VAT/GST/Sales tax: Charged on the customs value plus duty. Rates vary by country (e.g., 20% in the UK, 19% in Germany, 10% GST in Australia, 0-10% state sales tax in the US).

3. Additional fees: Such as merchandise processing fee (MPF) in the US, or import processing charges in Australia.

How to reduce import taxes in your country:

  1. Use a Certificate of Origin. If your country has a free trade agreement (FTA) with China, a preferential certificate of origin can reduce or eliminate customs duties. For example, under ChAFTA (China-Australia FTA), most products have 0% duty.
  1. Check your HS code. The correct HS code determines your duty rate. A wrong code may result in higher duties.
  1. Use the de minimis threshold. Many countries allow duty-free import of low-value shipments. For example, the US allows duty-free import for shipments under $800. The EU threshold is 150 euros.

Example (US import): If you import shoes valued at $100 per pair, and the duty rate is 10%, you pay $10 in duty per pair. Plus MPF (0.3464% of value).

What is the difference between export tax rebate and import duty?

This is a common source of confusion. Here is the difference:

  • China Export Tax Rebate: Goes to the Chinese supplier. It is a refund of Chinese VAT. It lowers the price you pay. You cannot claim it.
  • Your Country's Import Duty: You pay this to your government. It is a tax on imported goods. It increases your total cost. You cannot avoid it, but you can reduce it with an FTA certificate.

Key takeaway: The Chinese export tax rebate makes your purchase price lower. The import duty in your country adds to your cost. You cannot transfer the Chinese tax rebate to your country to offset import duties.

Recent changes to China's export tax rebate policy

China regularly adjusts export tax rebate rates to encourage or discourage certain industries. Here are recent changes you should be aware of:

2026 changes:

  • Photovoltaic (solar) products: Export tax rebate cancelled effective April 1, 2026.
  • Battery products: Rebate rate reduced from 9% to 6% (April 1 to December 31, 2026), then cancelled from January 1, 2027.
  • Other affected products: Chemicals, PVC, kitchenware, ceramics, glass products.

What this means for you: If you source products in affected categories, suppliers may raise prices because they lose the tax rebate. Always confirm the current price and ask whether recent policy changes affect your order.

Tips for getting the best price at the Canton Fair

  1. Ask for the export price. Confirm that the quoted price is tax-exclusive (for export), not tax-inclusive (for domestic sale).
  1. Understand the supplier's tax rebate. If the product has a high tax rebate rate (e.g., 13%), the supplier has more room to negotiate. If the rebate is low or cancelled, the price may be higher.
  1. Compare FOB and EXW prices. FOB (Free on Board) includes export declaration, which is needed for the supplier to claim the tax rebate. EXW (Ex Works) does not include export declaration, and the supplier may not be able to claim the rebate. Ask which terms they prefer.
  1. Use a supplier with export rights. Only companies with import-export licenses can claim the export tax rebate. Trading companies without export rights may use a third-party export agent.
  1. Get the right documents. For FTA benefits, ask for the correct certificate of origin.

Bottom Line

Here is what you need to know about tax refunds at the Canton Fair:

  1. China's export tax rebate goes to the supplier, not you. But it indirectly lowers the price you pay.
  2. The price you pay at the Canton Fair is already tax-exclusive for export orders. You do not pay Chinese VAT.
  3. You cannot directly claim China's export tax rebate. Only the Chinese supplier can apply for it.
  4. Departure tax refund (11% or 8%) applies to retail purchases you take with you on the plane, not to bulk export orders.
  5. You will pay import duties and taxes in your own country. Use an FTA certificate of origin to reduce these.
  6. Recent policy changes (2026) cancelled rebates for solar, battery, ceramic, and glass products. Prices for these items may increase.
  7. Always ask for the export price and confirm whether the supplier has export rights.
  8. Work with a customs broker to calculate your actual total landed cost (product cost + shipping + import duties + taxes).

The Canton Fair price you negotiate already reflects China's export tax policy. Focus on getting a good FOB price, securing the right certificate of origin, and accurately calculating your import duties. That is how you maximize your savings.

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