Our company plans to engage a proxy company for export business but is unclear about whether taxes are involved in this process. We’d like to understand: What taxes are related to export by proxy? Are they paid by the proxy company or by us, the principal? We hope professionals can provide a detailed explanation so we can be well-informed and prepare accordingly.
Want to understand what a multi-exit proxy tool is, its application scenarios, and practical value for ordinary users. A multi-exit proxy tool is a tool that allows users to access the internet through multiple network exits, similar to having multiple routes to choose from when going out. Enterprises use it to ensure high network availability, while web crawlers and data analysts use it to obtain more data. Ordinary users might use it to bypass specific network restrictions.
Our company plans to hire an agency for export business and wants to understand how taxation is calculated for export agency, including specific handling of VAT and customs duties in such arrangements. The best answer indicates that for VAT, manufacturing enterprises entrusting export agencies implement the "exemption, credit, and refund" method, while trading enterprises adopt the "levy first, refund later" approach. Customs duties are calculated based on tariff codes and corresponding rates, and agency fees are charged as a percentage of the export amount.
The company plans to engage in agency export labor services and inquires about how to pay taxes for this business, including the involved tax types, rates, special policies, and precautions. The best answer states that it mainly involves Value-Added Tax (VAT), with a general taxpayer rate typically at 6%, and some cases may be exempt; for small-scale taxpayers, the levy rate is 3%, reduced to 1% before December 31, 2023. Additional surcharges may also apply, and attention should be paid to business nature judgment and document retention.
Want to understand who handles tax refunds during export agency services and the related processes and considerations. The best answer indicates that the tax refund entity is usually agreed upon by both parties. One option is for the client to handle the refund themselves, requiring specific qualifications, while the export agency provides documentation. The other option is for the export agency to handle the refund, with the client providing necessary materials. Key points include ensuring business authenticity, document compliance, and meeting tax refund deadlines.
Our company plans to find an import and export agent to handle business and wants to know what taxes need to be reported during this process to understand the tax costs and avoid tax problems. The best answer states that import and export agents mainly involve customs duties, value-added tax, consumption tax, and may also involve additional taxes such as urban maintenance and construction tax and education surcharges. Customs duties vary depending on factors such as the type of goods, and the calculation of value-added tax and consumption tax each has its own rules.
The company plans to find an agent to export products and asks whether the agency fees, customs declaration and inspection fees and other related service fees generated by the agency export are tax-exempt. The best answer points out that if the agent is a small-scale taxpayer and the sales volume meets the standard, the agency fee can be tax-exempt; for general taxpayers, it is usually not tax-exempt. The customs declaration and inspection service fees are generally taxed at 6%, and there is no special tax exemption policy. The specific situation should be judged according to the actual situation of the enterprise and the local tax regulations.
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Professional consultant answers
Jennifer WangYears of service：4Customer Rating：5.0
Market development consultantConsult
Whether taxes apply to export by proxy depends on the situation. From a VAT perspective, if the exported goods fall under a VAT-exempt category, neither the principal nor the agent generally needs to pay VAT—the export process is exempt, and the corresponding input tax can be adjusted. If the exported goods qualify for a VAT refund policy, the principal can usually claim a refund, while the agent, primarily providing proxy services, must pay VAT on the service fee, typically at a 6% rate. From a tariff perspective, the obligation to pay tariffs generally falls on the actual importer/exporter, i.e., the principal. In short, the proxy company only pays taxes on its service income, while the main tax liabilities related to the exported goods depend on the applicable policies for the principal.
It is advisable to clarify each party's tax responsibilities in the export proxy contract to avoid future disputes.
Andrew HuangYears of service：7Customer Rating：5.0
Supply chain optimization expertConsult
Generally, the proxy company pays VAT on its service fee, similar to other service providers. The principal should follow the applicable policies for the exported goods—if they qualify for exemption or refund, the procedures should be followed accordingly.
David LiYears of service：6Customer Rating：5.0
Senior customs declaration consultantConsult
In export by proxy, the proxy company charges a service fee and pays VAT as a service provider. If the principal’s goods qualify for an export tax refund, they can prepare the documents and apply for the refund without paying additional VAT. If not, the goods may be treated as domestic sales and subject to VAT.
Joseph ZhouYears of service：10Customer Rating：5.0
Senior foreign trade managerConsult
The key factor in taxation for export by proxy is the nature of the principal’s goods. If the goods are tax-exempt, no VAT is payable. If they are taxable but do not qualify for a refund, the principal must pay VAT as required. The agent pays VAT on the service fee.
Emily LiuYears of service：10Customer Rating：5.0
Settlement and payment expertConsult
The proxy company must pay VAT on its service fee as per regulations. For the principal’s exported goods, if they meet the refund conditions, they can claim a refund without paying tax; otherwise, the principal must handle the tax obligations, which may include paying taxes.
Amanda YangYears of service：3Customer Rating：5.0
Cost control consultantConsult
The principal should check the export goods: if they qualify for a refund, they can apply normally without paying tax. The proxy company calculates and pays VAT on its service fee income at a 6% rate.
William YangYears of service：5Customer Rating：5.0
International logistics consultantConsult
The principal determines the tax based on the export goods. The proxy company, as a pure service provider, pays VAT at 6% on its service fee.
Michelle ChenYears of service：3Customer Rating：5.0
Business coordination consultantConsult
In export by proxy, the proxy company pays VAT on its service fee. The principal’s exported goods are subject to applicable export tax policies—either exempt, refundable, or taxable.
Elizabeth LiYears of service：3Customer Rating：5.0
Compliance and risk managerConsult
The proxy company pays VAT on its service fee. The principal’s exported goods follow the policy: if eligible for a refund, they can claim it; otherwise, they may be treated as domestic sales and taxed.
James LiuYears of service：10Customer Rating：5.0
Foreign trade tax refund consultantConsult
In export by proxy, the proxy company pays VAT on its service fee. The principal’s exported goods are subject to relevant export tax policies to determine whether taxes apply.