The freight forwarding export business generally involves value-added tax. In China, freight forwarding belongs to logistics auxiliary services, and the value-added tax rate for general taxpayers is 6%. The levy rate applicable to small-scale taxpayers is 3%. However, in actual operations, if the freight forwarding provides international freight forwarding services, according to relevant policy regulations, since September 1, 2014, the international freight forwarding services provided by pilot taxpayers are exempt from value-added tax. The international freight forwarding services here refer to the business activities of accepting the entrustment of the consignee of the goods or its agent, the shipper or its agent, the owner of the means of transport, the lessee of the means of transport or the operator of the means of transport, handling the international transportation of the goods directly for the principal in the name of the principal or in its own name without directly providing the goods transportation services, engaging in the entry and exit of the means of transport for international transportation at ports, contacting and arranging pilotage, berthing, loading and unloading and other related business formalities for goods and ship agency.
So, you need to first clarify whether your business belongs to domestic or international freight forwarding, and then determine the applicable tax rate.
Professional consultant answers
James LiuYears of service：10Customer Rating：5.0
Foreign trade tax refund consultantConsult
The freight forwarding export business generally involves value-added tax. In China, freight forwarding belongs to logistics auxiliary services, and the value-added tax rate for general taxpayers is 6%. The levy rate applicable to small-scale taxpayers is 3%. However, in actual operations, if the freight forwarding provides international freight forwarding services, according to relevant policy regulations, since September 1, 2014, the international freight forwarding services provided by pilot taxpayers are exempt from value-added tax. The international freight forwarding services here refer to the business activities of accepting the entrustment of the consignee of the goods or its agent, the shipper or its agent, the owner of the means of transport, the lessee of the means of transport or the operator of the means of transport, handling the international transportation of the goods directly for the principal in the name of the principal or in its own name without directly providing the goods transportation services, engaging in the entry and exit of the means of transport for international transportation at ports, contacting and arranging pilotage, berthing, loading and unloading and other related business formalities for goods and ship agency.
So, you need to first clarify whether your business belongs to domestic or international freight forwarding, and then determine the applicable tax rate.
Robert ChenYears of service：6Customer Rating：5.0
Customer service consultantConsult
If it is domestic freight forwarding, general taxpayers calculate value-added tax at 6%. If the business includes parts of international transportation agency and meets the tax exemption conditions, then this part is tax-exempt.
David LiYears of service：6Customer Rating：5.0
Senior customs declaration consultantConsult
For small-scale taxpayers in freight forwarding export, regardless of whether it is domestic or international related business, the levy rate is basically 3%, but international freight forwarding that meets the conditions is also tax-exempt.
Elizabeth LiYears of service：3Customer Rating：5.0
Compliance and risk managerConsult
It should also be noted that for some special goods transportation agency, there may be special regulations, but most still follow the tax rates or levy rates of general taxpayers and small-scale taxpayers.
Sarah ZhangYears of service：8Customer Rating：5.0
Document expertConsult
The documentation fees, handling fees, etc. involved in the business are usually taxed according to the tax rate of freight forwarding services.
Andrew HuangYears of service：7Customer Rating：5.0
Supply chain optimization expertConsult
Before determining the tax rate, you must look at the nature of the business. The difference in tax rates between domestic and international freight forwarding is quite large.
Emily LiuYears of service：10Customer Rating：5.0
Settlement and payment expertConsult
During actual operations, it is best to confirm with the local tax department to ensure the accurate implementation of the tax rate policy.
Michelle ChenYears of service：3Customer Rating：5.0
Business coordination consultantConsult
When enterprises issue invoices and file tax returns, they should follow the correct tax rate to avoid tax risks.
Jennifer WangYears of service：4Customer Rating：5.0
Market development consultantConsult
If the freight forwarding export involves cross-border e-commerce, the policy may sometimes be adjusted, so it is necessary to pay attention in a timely manner.