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In the agency export business, who should actually receive the tax rebates?

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Our company plans to seek agency export services. I'd like to know under this business model, who will actually receive the tax rebates? Is it the entrusting party or the agency? Will there be any special circumstances involved, such as when both parties sign a special agreement and the attribution of tax rebates will change? Please help answer this question. Thank you!

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Professional consultant answers

Amanda Yang
Amanda YangYears of service:3Customer Rating:5.0

Cost control consultantConsult

In the agency export business, tax rebates are generally received by the entrusting party. This is because the entrusting party is the actual exporter and seller of the goods, who bears the production and procurement costs of the goods, etc. The export tax rebate is essentially a refund of the input tax amount contained in the exported goods, so the entrusting party should rightfully receive the tax rebates.

However, if the entrusting party and the agency sign a special agreement, the attribution of tax rebates may be implemented according to the agreement. For example, the entrusting party may, based on other value-added services provided by the agency, agree to assign part or all of the tax rebates to the agency. However, such an agreement must be clear and legal to avoid subsequent tax risks and legal disputes.

In any case, relevant tax laws and export tax rebate policies must be followed to ensure compliance in operations.

David Li
David LiYears of service:6Customer Rating:5.0

Senior customs declaration consultantConsult

Normally, the entrusting party receives the tax rebates because it is the actual export business entity. However, if the agency has made great efforts in facilitating the export business and both parties agree to assign part of the tax rebates to the agency, it is also acceptable, but the agreement must be clearly written.

Sarah Zhang
Sarah ZhangYears of service:8Customer Rating:5.0

Document expertConsult

Normally, the entrusting party receives the tax rebates. After all, the relevant costs of the exported goods are borne by the entrusting party. However, if the agency advances funds to purchase the goods and the agreement stipulates that the tax rebates belong to the agency, then it shall be implemented according to the agreement.

Robert Chen
Robert ChenYears of service:6Customer Rating:5.0

Customer service consultantConsult

Generally, the entrusting party receives the tax rebates. However, if the services provided by the agency have high added value and both parties clearly define the distribution method of tax rebates in the contract, then it shall be implemented according to the contract. Just don't have disputes afterwards.

Andrew Huang
Andrew HuangYears of service:7Customer Rating:5.0

Supply chain optimization expertConsult

The tax rebates are, in principle, given to the entrusting party. But if both parties have a written agreement regarding the distribution of tax rebates, then it shall be implemented according to the agreement. In short, there must be a clear written basis.

James Liu
James LiuYears of service:10Customer Rating:5.0

Foreign trade tax refund consultantConsult

In most cases, the entrusting party receives the tax rebates. If the agency has made a lot of upfront investments, both parties can discuss the distribution of tax rebates. The key is that the agreement should be detailed and leave no loopholes.

William Yang
William YangYears of service:5Customer Rating:5.0

International logistics consultantConsult

Normally, the entrusting party receives the tax rebates. But if the agency assumes additional responsibilities in the tax rebate handling process, the attribution of tax rebates can also be adjusted after negotiation between both parties.

Joseph Zhou
Joseph ZhouYears of service:10Customer Rating:5.0

Senior foreign trade managerConsult

Generally, the entrusting party receives the tax rebates. If there is a special note on the attribution of tax rebates in the agency export agreement, then it shall be implemented according to the agreement. Just do things according to the rules.

Elizabeth Li
Elizabeth LiYears of service:3Customer Rating:5.0

Compliance and risk managerConsult

The entrusting party is usually the recipient of the tax rebates. But if the agency and the entrusting party reach a special consensus regarding the tax rebates and write it into the contract, then it shall be processed according to the contract.

Michelle Chen
Michelle ChenYears of service:3Customer Rating:5.0

Business coordination consultantConsult

By default, the entrusting party receives the tax rebates. If the entrusting party and the agency have a special agreement, for example, if the agency helps to reduce the export costs, it can be agreed to assign part of the tax rebates to the agency.

The relevant questions or replies only represent the user’s personal stance and do not represent any views of this website.

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