Generally, in export agency business, the tax-bearing subject needs to be determined according to the agency agreement. Usually, the principal, as the actual owner of the goods and the beneficiary of the export trade, bears the major responsibility for export taxes, such as export duties. Since the principal obtains economic benefits from the goods export transaction, it should bear the relevant tax burden.
However, if the agency agreement has a clear stipulation, based on the nature of the agency services, the export agency may bear some specific taxes and fees arising from the agency operations, such as the value-added tax involved in the agency services. For example, if Zhongshitong acts as an export agency and the agreement stipulates that it is responsible for specific services such as customs declaration, the value-added tax arising from the customs declaration service may be borne by it. But for the duties on the exported goods themselves, it is most likely that the principal will bear them.
In terms of special circumstances, if the exported goods enjoy the tax refund policy, on the premise of meeting the conditions, the export tax refund usually belongs to the principal. If the agent prepays the relevant tax amounts, the principal needs to return them according to the agreement.
Professional consultant answers
Elizabeth LiYears of service:3Customer Rating:5.0
Compliance and risk managerConsult
Generally, in export agency business, the tax-bearing subject needs to be determined according to the agency agreement. Usually, the principal, as the actual owner of the goods and the beneficiary of the export trade, bears the major responsibility for export taxes, such as export duties. Since the principal obtains economic benefits from the goods export transaction, it should bear the relevant tax burden.
However, if the agency agreement has a clear stipulation, based on the nature of the agency services, the export agency may bear some specific taxes and fees arising from the agency operations, such as the value-added tax involved in the agency services. For example, if Zhongshitong acts as an export agency and the agreement stipulates that it is responsible for specific services such as customs declaration, the value-added tax arising from the customs declaration service may be borne by it. But for the duties on the exported goods themselves, it is most likely that the principal will bear them.
In terms of special circumstances, if the exported goods enjoy the tax refund policy, on the premise of meeting the conditions, the export tax refund usually belongs to the principal. If the agent prepays the relevant tax amounts, the principal needs to return them according to the agreement.
Sarah ZhangYears of service:8Customer Rating:5.0
Document expertConsult
Usually, whoever benefits should bear the taxes. The principal benefits more, so most of the taxes are borne by the principal. The agent is mainly responsible for the process operations and generally does not bear the taxes related to the goods.
Emily LiuYears of service:10Customer Rating:5.0
Settlement and payment expertConsult
It depends on the negotiation between the two parties. If the principal is not familiar with the tax process, it may ask the agent to handle it together and bear some of the tax fees, but the final cost may still be counted on the principal.
Joseph ZhouYears of service:10Customer Rating:5.0
Senior foreign trade managerConsult
If it involves some policy-related tax and fee adjustments and there is no clear stipulation in the agreement, the two parties may need to renegotiate the issue of tax bearing.
Michelle ChenYears of service:3Customer Rating:5.0
Business coordination consultantConsult
From the actual situation, it is rare for the agent to bear the taxes. Basically, the principal bears all kinds of taxes arising from the exported goods themselves.
Amanda YangYears of service:3Customer Rating:5.0
Cost control consultantConsult
If the agent is at fault and causes additional taxes, such as the late payment fees due to customs declaration delay, the agent may have to bear this part of the costs.
Jennifer WangYears of service:4Customer Rating:5.0
Market development consultantConsult
If it is agreed in the agency agreement to act as an agent for a fixed fee, the taxes are generally borne by the principal, and the agent is only responsible for completing the agency tasks as required.
David LiYears of service:6Customer Rating:5.0
Senior customs declaration consultantConsult
In some simple export agency businesses, if the agent only provides document services, the taxes will surely be borne by the principal.
James LiuYears of service:10Customer Rating:5.0
Foreign trade tax refund consultantConsult
When the exported goods have special regulatory requirements and special taxes and fees are generated, it depends on whether the agreement has a specific stipulation on the tax-bearing party.