Whether qualitative agency export requires tax supplementation depends on the situation. Generally, if the agency export business is completely compliant, that is, the agency only charges agency fees, the ownership of the exported goods belongs to the consignor, and the consignor has handled the relevant procedures such as the declaration of export tax refunds as required, the agency does not need to supplement taxes.
However, tax supplementation may be required in the following situations: First, if the consignor fails to declare for export tax refunds as required, resulting in the inability to obtain tax refunds, the tax authorities may require the recovery of the refunded taxes. Although the agency does not directly bear the main responsibility for tax supplementation, the business may be implicated. Second, if there are false operations during the agency process, such as inflating agency fees and other untrue situations, after the tax authorities verify and discover them, they may require tax supplementation for the untrue parts. Third, if there are quality problems or other reasons for the exported goods that cause them not to meet the conditions for tax refunds, and tax refunds have been obtained in the earlier stage, the refunded taxes may need to be recovered, and the agency needs to cooperate in handling the situation. In short, compliant agency exports usually do not require tax supplementation. The key is that each link of the business must comply with tax laws and regulations.
Professional consultant answers
Jennifer WangYears of service:4Customer Rating:5.0
Market development consultantConsult
Whether qualitative agency export requires tax supplementation depends on the situation. Generally, if the agency export business is completely compliant, that is, the agency only charges agency fees, the ownership of the exported goods belongs to the consignor, and the consignor has handled the relevant procedures such as the declaration of export tax refunds as required, the agency does not need to supplement taxes.
However, tax supplementation may be required in the following situations: First, if the consignor fails to declare for export tax refunds as required, resulting in the inability to obtain tax refunds, the tax authorities may require the recovery of the refunded taxes. Although the agency does not directly bear the main responsibility for tax supplementation, the business may be implicated. Second, if there are false operations during the agency process, such as inflating agency fees and other untrue situations, after the tax authorities verify and discover them, they may require tax supplementation for the untrue parts. Third, if there are quality problems or other reasons for the exported goods that cause them not to meet the conditions for tax refunds, and tax refunds have been obtained in the earlier stage, the refunded taxes may need to be recovered, and the agency needs to cooperate in handling the situation. In short, compliant agency exports usually do not require tax supplementation. The key is that each link of the business must comply with tax laws and regulations.
Elizabeth LiYears of service:3Customer Rating:5.0
Compliance and risk managerConsult
If the agency export contract has a clear agreement on the sharing of taxes and fees, it shall be implemented according to the agreement. If the consignor does not handle tax supplementation matters as agreed, the agency may face tax risks and may also be involved in tax supplementation.
Joseph ZhouYears of service:10Customer Rating:5.0
Senior foreign trade managerConsult
If the exported goods have enjoyed certain tax preferential policies in the domestic production process and later do not meet the preferential conditions for various reasons, tax supplementation may be involved, and agency export is no exception.
James LiuYears of service:10Customer Rating:5.0
Foreign trade tax refund consultantConsult
Tax policies will be adjusted. If the agency export business is in the transition period of policy changes, the differences between the old and new policies may cause changes in situations where originally no tax supplementation was required. It is necessary to pay timely attention to policy adjustments.
Emily LiuYears of service:10Customer Rating:5.0
Settlement and payment expertConsult
If the customs declaration information of the agency exported goods is incorrect, resulting in incorrect calculation of tax refunds, once discovered, it may be necessary to recalculate and may involve tax supplementation.
Amanda YangYears of service:3Customer Rating:5.0
Cost control consultantConsult
If the agency is not standardized in financial accounting and the records of relevant revenues and expenditures such as agency fees are chaotic, when inspected by the tax department, it may be determined that there are tax problems and thus tax supplementation may be required.
David LiYears of service:6Customer Rating:5.0
Senior customs declaration consultantConsult
If the export goods information provided by the consignor is untrue and is detected by the tax authorities, not only the consignor but also the agency, due to its participation in the business, may face the risks of investigation and tax supplementation.
Michelle ChenYears of service:3Customer Rating:5.0
Business coordination consultantConsult
When agency export involves special settlement methods such as RMB settlement in cross-border trade, if the operations are not carried out as required, it may affect tax refunds and thus may require tax supplementation.
Robert ChenYears of service:6Customer Rating:5.0
Customer service consultantConsult
If the origin of the exported goods does not meet the relevant regulations, it may affect the enjoyment of export tax refund policies, thereby triggering tax supplementation situations.