China: Ministry of Finance, General Administration of Customs and General Administration of Taxation issued policy on tax incentives for returned goods exported via cross-border e-commerce including indirect taxes regulation

On 6 February 2026, the Ministry of Finance of the People’s Republic of China, the General Administration of Customs of the People’s Republic of China, and the State Administration of Taxation issued a policy on tax incentives for returned goods exported via cross-border e-commerce. In accordance with the policy, returned goods are exempt from import value-added tax (VAT) and consumption tax, provided they are returned in their original condition within a period of 6 months following their export, as a consequence of delayed sales. Moreover, the aforementioned announcement clarifies that with regard to VAT and consumption tax levied at the time of export, the taxation handling shall be implemented in accordance with the relevant provisions concerning the return of domestic goods.