Entrepot trade generally does not involve customs duties because the goods do not enter the domestic customs territory. However, it may involve value-added tax. In our country, if the entrepot trade meets certain conditions, it can be applicable to the tax exemption policy, such as selling to overseas units and being completely consumed overseas, etc. If it does not meet the tax exemption conditions, it is required to pay value-added tax according to the regulations. Usually, the tax rate is 13%. The taxable amount = the output tax amount of the current period - the input tax amount of the current period. The output tax amount = the sales amount × the tax rate.
In addition, it may also involve stamp duty, and the stamp tax is affixed at three ten-thousandths of the amount of the purchase and sales contract. At the same time, it should be noted that the proof of the transfer of property rights of the goods and other materials need to be properly preserved for tax inspection. There may be slight differences in policies in different regions, and it is recommended to confirm with the local tax authorities.
Professional consultant answers
Jennifer WangYears of service：4Customer Rating：5.0
Market development consultantConsult
Entrepot trade generally does not involve customs duties because the goods do not enter the domestic customs territory. However, it may involve value-added tax. In our country, if the entrepot trade meets certain conditions, it can be applicable to the tax exemption policy, such as selling to overseas units and being completely consumed overseas, etc. If it does not meet the tax exemption conditions, it is required to pay value-added tax according to the regulations. Usually, the tax rate is 13%. The taxable amount = the output tax amount of the current period - the input tax amount of the current period. The output tax amount = the sales amount × the tax rate.
In addition, it may also involve stamp duty, and the stamp tax is affixed at three ten-thousandths of the amount of the purchase and sales contract. At the same time, it should be noted that the proof of the transfer of property rights of the goods and other materials need to be properly preserved for tax inspection. There may be slight differences in policies in different regions, and it is recommended to confirm with the local tax authorities.
James LiuYears of service：10Customer Rating：5.0
Foreign trade tax refund consultantConsult
If entrepot trade involves services such as warehousing, there may be taxes and fees related to warehousing services, such as urban maintenance and construction tax, education surcharges, etc. These are calculated based on the actually paid value-added tax and consumption tax amounts. The urban maintenance and construction tax rate in urban areas is 7%, and the education surcharge rate is 3%.
William YangYears of service：5Customer Rating：5.0
International logistics consultantConsult
From the perspective of funds, entrepot trade involves foreign exchange receipts and payments. Although there are no specific taxes and fees for foreign exchange, it is necessary to pay attention to the cost changes brought about by exchange rate fluctuations. During settlement, the profit may be affected by exchange rate changes, and this factor should be fully considered when calculating costs.
Emily LiuYears of service：10Customer Rating：5.0
Settlement and payment expertConsult
If intermediary agencies such as freight forwarders are used in entrepot trade, freight forwarder fees may be generated, and this part of the fees may include some additional taxes and fees. For example, a freight forwarder company may pay value-added tax for providing services, etc., and it will eventually be reflected in the charges.
Elizabeth LiYears of service：3Customer Rating：5.0
Compliance and risk managerConsult
If insurance fees occur during the transportation of entrepot trade goods, when the insurance company collects the premiums, it may involve taxes and fees related to the insurance industry, such as stamp duty, etc., and the specific proportion is calculated according to a certain proportion of the amount of the insurance contract.
Joseph ZhouYears of service：10Customer Rating：5.0
Senior foreign trade managerConsult
When carrying out entrepot trade in some free trade ports or specific areas, there may be more favorable policies. For example, some free trade ports exempt entrepot trade goods from customs duties and value-added tax, etc. You can pay attention to the local regional policies.
Sarah ZhangYears of service：8Customer Rating：5.0
Document expertConsult
The documentary materials related to entrepot trade, such as contracts, bills of lading, etc., should ensure their authenticity and integrity, which is very important for tax and fee calculation and tax declaration, and avoid tax risks caused by material problems.
Amanda YangYears of service：3Customer Rating：5.0
Cost control consultantConsult
The pricing of entrepot trade needs to be reasonable. If the pricing is unreasonable, the tax authorities may make adjustments, which will further affect the calculation of taxes and fees such as value-added tax, and it is necessary to follow the laws of market prices.
Andrew HuangYears of service：7Customer Rating：5.0
Supply chain optimization expertConsult
Corporate income tax cannot be ignored either. The profits of entrepot trade should be included in the taxable income amount for calculating and paying corporate income tax. The general tax rate is 25%, and those with preferential policies will be taxed according to the preferential tax rate.