This Announcement (the "Announcement No. 5") further elaborates on the Announcement on Policies Concerning Value-Added Tax and Consumption Tax on Export Business (the "Announcement No. 11"). By consolidating management documents issued at different times, it systematically standardizes policies for VAT and consumption tax refunds (exemptions) for export business. This adjustment aims to simplify procedures, reduce institutional costs, and strengthen compliance management requirements. The main changes are as follows:

• Optimization of the Mechanism for Modifying the Refund (Exemption) Filing

Under the previous rules, taxpayers were required to settle all taxes due before applying to change their refund (exemption) method, and after the change, they were no longer permitted to apply for refunds (exemptions) on transactions conducted prior to the modification. While retaining the above principles, Announcement No. 5 introduces exceptional circumstances. For situations where taxpayers are unable to settle taxes immediately due to objective factors, or where they have inadvertently selected the incorrect refund (exemption) method due to unfamiliarity with the policies, they may, after reporting the situation as required, change the filing without first settling the taxes. The relevant refund (exemption) applications can then be processed subsequently.

• Clarification of Declaration Requirements under the New Policies of Announcement No. 11

In response to the new policies stipulated in Announcement No. 11, which apply the "exemption, credit, and refund" method to specific export business—including space transportation services, as well as cases where foreign trade enterprises directly export services or self-developed intangible assets—the specific declaration requirements have been refined.

• Strengthened Administration of Foreign Exchange Receipts

It is clearly stipulated that the receipt of foreign exchange for exported goods and repair services shall be completed by April 30 of the year following the customs declaration date. If the contract stipulates a receipt date later than April 30 of the following year, the foreign exchange shall be received within the contractual period, but no later than 36 months from the date of customs declaration.

For export tax refund (exemption) declarations submitted before April 30 of the following year, except for specific circumstances, there is no need to submit foreign exchange receipt materials; supporting documents should be retained for future inspection. For supplementary declarations submitted after April 30 of the following year, foreign exchange receipt documents must be submitted.

• Strengthened Coordinated Administration of VAT and Consumption Tax Refund (Exemption)

It is clearly stipulated that when taxpayers file a consumption tax refund (exemption) declaration, it shall be submitted together with the corresponding VAT refund (exemption) declaration.

• Standardized Management of Documentation Filing

It is clarified that taxpayers shall, within 15 days after declaring a tax refund (exemption), retain the required filing documents, such as purchase and sales contracts and transportation documents, in accordance with regulations. The retention period for these filing documents has been extended from the original 5-year requirement to 10 years.

• Full Digitization of Export Tax Refund (Exemption) Certificates

Full digitization has been achieved for the issuance of nine categories of export refund (exemption) certificates. Taxpayers may issue electronic certificates through online channels such as the Electronic Tax Bureau and the International Trade Single Window.