Attention all business owners in the Philippines who import goods from China! Have you ever wondered why some China factories charge an extra fee for tax refunds? And why is it important for you to know about this?

When a China factory exports goods, they may have paid taxes during the manufacturing process, such as VAT and consumption tax. However, when they export these goods, they can apply for a tax refund from the government. This helps to reduce the overall cost of the goods and makes them more competitive in the global market.

But here’s the catch – applying for a tax refund can be a complicated process. It requires a lot of paperwork and documentation, and it can take time to process. That’s why some China factories may charge an extra fee for this service. It helps to cover the cost of the administrative work and ensures that the tax refund process runs smoothly.

So, why is this important for you as a business owner in the Philippines? Well, understanding the tax refund process can help you negotiate better deals with your China suppliers. By knowing that they may charge an extra fee for this service(usually about 4000 pesos), you can factor it into your overall cost when you’re comparing quotes from different suppliers. It can also help you to understand why some suppliers may be more expensive than others, even if their product quality is the same.

We SourcingPH have years of experience working with China factories and helping our clients navigate the complex world of international trade. We can help you understand the tax refund process and negotiate better deals with your suppliers. Contact us today to learn more about our services and how we can help you streamline your imports from China.