Whether tax is payable for export agency depends on the situation. First of all, if the agent only provides agency services and charges an agency fee, then the agent needs to pay VAT and surcharges on the agency fee. VAT is generally subject to the applicable tax rate for modern service industries. Currently, the tax rate for general taxpayers is 6%, and the collection rate for small-scale taxpayers is 3% (there are preferential policies during the epidemic).
For the principal, if the goods entrusted for export fall within the scope of tax exemption or tax refund, under certain conditions, the principal can enjoy the export tax exemption or tax refund policy and does not need to pay VAT and consumption tax. For example, for goods exported under general trade that meet the tax refund conditions, the principal can declare export tax refund. However, if the goods entrusted for export do not fall within the scope of tax refund and do not meet the tax exemption conditions, then VAT and other taxes need to be paid as if they were domestic sales.
Regarding the tax payment process, the agent shall declare and pay the taxes related to the agency fee according to the regular VAT declaration process. If the principal is involved in export tax refund, it needs to prepare materials such as export declarations and invoices as required and declare tax refund to the tax authorities.
Professional consultant answers
Elizabeth LiYears of service:3Customer Rating:5.0
Compliance and risk managerConsult
Whether tax is payable for export agency depends on the situation. First of all, if the agent only provides agency services and charges an agency fee, then the agent needs to pay VAT and surcharges on the agency fee. VAT is generally subject to the applicable tax rate for modern service industries. Currently, the tax rate for general taxpayers is 6%, and the collection rate for small-scale taxpayers is 3% (there are preferential policies during the epidemic).
For the principal, if the goods entrusted for export fall within the scope of tax exemption or tax refund, under certain conditions, the principal can enjoy the export tax exemption or tax refund policy and does not need to pay VAT and consumption tax. For example, for goods exported under general trade that meet the tax refund conditions, the principal can declare export tax refund. However, if the goods entrusted for export do not fall within the scope of tax refund and do not meet the tax exemption conditions, then VAT and other taxes need to be paid as if they were domestic sales.
Regarding the tax payment process, the agent shall declare and pay the taxes related to the agency fee according to the regular VAT declaration process. If the principal is involved in export tax refund, it needs to prepare materials such as export declarations and invoices as required and declare tax refund to the tax authorities.
Andrew HuangYears of service:7Customer Rating:5.0
Supply chain optimization expertConsult
For general export agency, the agent pays VAT on the agency fee. If the principal can get a tax refund for the exported goods, it shall handle the tax refund according to the process and does not need to pay additional taxes. If it cannot get a tax refund, the principal may have to pay taxes as if it were domestic sales.
Jennifer WangYears of service:4Customer Rating:5.0
Market development consultantConsult
The key to tax payment for export agency depends on the nature of the goods and the agency agreement. For some products that the country encourages to export, the principal is likely to get a tax refund and there is no additional tax payment involved. The agent pays tax on the agency fee.
Sarah ZhangYears of service:8Customer Rating:5.0
Document expertConsult
If the goods exported by the principal meet the tax exemption policy, there is no need to pay VAT and consumption tax. The agency fee received by the agent is subject to VAT as required. Small-scale taxpayers pay less tax.
Emily LiuYears of service:10Customer Rating:5.0
Settlement and payment expertConsult
If the principal exports goods that are not eligible for tax refund, it needs to pay VAT as if they were domestic sales, and the tax rate depends on the tax rate corresponding to the goods. The agent pays VAT on the agency fee according to the service industry.
James LiuYears of service:10Customer Rating:5.0
Foreign trade tax refund consultantConsult
The tax payment situation for export agency is relatively complicated. It mainly depends on the category of the goods exported by the principal and the relevant tax policies. There are quite big differences in different situations.
David LiYears of service:6Customer Rating:5.0
Senior customs declaration consultantConsult
The agent's agency fee is subject to VAT whether it is a general taxpayer or a small-scale taxpayer, but the tax rate or collection rate is different. The principal depends on the tax refund and exemption situation of the exported goods.
Robert ChenYears of service:6Customer Rating:5.0
Customer service consultantConsult
If the principal's goods can enjoy export tax refund, it shall go through the normal tax refund procedures and not pay taxes. The agent pays tax on the agency fee in accordance with the service industry standards.
Joseph ZhouYears of service:10Customer Rating:5.0
Senior foreign trade managerConsult
For tax payment in export agency, first determine the tax refund and exemption status of the principal's goods, then determine the respective tax obligations of both parties, and declare as required.
Amanda YangYears of service:3Customer Rating:5.0
Cost control consultantConsult
In export agency, the agent's collection of agency fees involves VAT, and whether the principal's exported goods are subject to tax payment, tax refund or exemption is determined according to the tax policies.