Who is responsible for tax refund in agency export? Come and find out!
Our company plans to seek agency export services. Now I have a question. In agency export, should the tax refund be handled by the entrusting party or the agency? I haven't been involved in this area before and I'm not quite clear about the relevant regulations and operation procedures. The amount involved in the tax refund is not small. I'm afraid there will be trouble if I make a mistake. I hope to have a detailed understanding of who should handle the tax refund and what special precautions need to be taken during the handling process.
Professional consultant answers
Emily LiuYears of service:10Customer Rating:5.0
Settlement and payment expertConsult
In general, in agency export tax refund, whoever pays the value-added tax applies for the tax refund. In agency export services, if the entrusting party issues invoices on its own and bears the value-added tax and other related taxes and fees in domestic procurement and production links, then the entrusting party is the subject of tax refund and applies for the tax refund by the entrusting party. The agency usually only provides agency services and assists the entrusting party to complete export-related formalities.
When the entrusting party applies for tax refund, it needs to prepare a series of materials such as agency export agreements, export goods declaration forms, export invoices, etc., and declare tax refunds to the competent tax authorities according to the prescribed process. However, if the agency exports goods in its own name and bears the corresponding taxes and fees, then the agency is the subject of tax refund. But this situation is relatively rare and the operation is more complicated. In short, who specifically handles the tax refund depends on the actual business model and the subject bearing the taxes and fees.
David LiYears of service:6Customer Rating:5.0
Senior customs declaration consultantConsult
Generally speaking, if the entrusting party and the agency agree that the entrusting party is responsible for procurement, production, etc., and the related taxes and fees are also borne by the entrusting party, then the tax refund should be handled by the entrusting party, and the agency only needs to cooperate by providing materials.
Robert ChenYears of service:6Customer Rating:5.0
Customer service consultantConsult
If the agency has substantial participation in the export business and bears more responsibilities and taxes and fees, then the agency may have the qualification for tax refund, but in practice, most of the time it is still the entrusting party that handles the tax refund.
Sarah ZhangYears of service:8Customer Rating:5.0
Document expertConsult
To determine who handles the tax refund, mainly look at the essence of the business and see which party bears the main tax payment obligations in the entire business process. The bearer is usually the tax refunding party.
William YangYears of service:5Customer Rating:5.0
International logistics consultantConsult
Normally, it is the entrusting party that handles the tax refund, because the entrusting party is the actual owner of the goods, and the agency only provides services. However, it still depends on the contract agreement between the two parties and the actual situation of the business.
Michelle ChenYears of service:3Customer Rating:5.0
Business coordination consultantConsult
If the entrusting party is responsible for the whole process of production and sales of the goods and only uses the agency to handle export formalities, in this case, it is more appropriate for the entrusting party to handle the tax refund.
Andrew HuangYears of service:7Customer Rating:5.0
Supply chain optimization expertConsult
When the agency only helps to handle the export process and everything else is dominated by the entrusting party, the entrusting party is naturally the subject of tax refund and needs to prepare tax refund materials according to the regulations.
Amanda YangYears of service:3Customer Rating:5.0
Cost control consultantConsult
Look at how the tax refund-related clauses are defined in the contract. If it is not clear, follow the convention. Whoever bears the taxes and fees in the procurement and production links handles the tax refund. Generally, it is the entrusting party.
Elizabeth LiYears of service:3Customer Rating:5.0
Compliance and risk managerConsult
In most agency export services, the entrusting party and the agency will clarify the subject of tax refund in advance and operate according to the agreement to avoid subsequent disputes.
James LiuYears of service:10Customer Rating:5.0
Foreign trade tax refund consultantConsult
From the perspective of actual operation, most of the time it is the entrusting party that handles the tax refund, because the entrusting party has the goods and production and procurement materials, which is more convenient for handling tax refund declarations.