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How on earth should the taxes and duties for export by agent be calculated? Come and teach me quickly!

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Our company intends to find an agency to handle the export business. We haven't been involved in this aspect before. I'd like to ask how on earth the taxes and duties for export by agent are calculated? Is the calculation method different for different products? Besides the products themselves, are there any other factors that will affect the tax calculation? I hope to get a more detailed answer so that I can have a clear understanding of the calculation of taxes and duties for export by agent.

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Professional consultant answers

Jennifer Wang
Jennifer WangYears of service:4Customer Rating:5.0

Market development consultantConsult

The calculation of taxes and duties for export by agent is relatively complicated and involves multiple aspects. Firstly, for value-added tax, a zero tax rate is generally implemented for the export of goods under general trade, that is, value-added tax is exempted in the export link, and at the same time, the value-added tax already paid in the purchase link is refunded. The calculation formula is: Tax Refund Amount = FOB Price of Export Goods × Foreign Exchange RMB Quotation × Tax Rebate Rate. If the export goods are purchased from small-scale taxpayers and are eligible for special tax refunds, the Tax Refund Amount = Sales Amount (including value-added tax) Listed on the Ordinary Invoice ÷ (1 + Levy Rate) × Tax Rebate Rate.

Regarding consumption tax, if the export goods belong to taxable consumer goods subject to consumption tax, there are three situations for the implemented policies: export tax exemption and tax refund, export tax exemption but no tax refund, and export with neither tax exemption nor tax refund. For specific calculation, for consumption tax calculated based on ad valorem rate, the Tax Refund Amount = Factory Sales Amount of Export Goods × Tax Rate; for consumption tax calculated based on specific quantity quota, the Tax Refund Amount = Export Quantity × Unit Tax Amount. In addition, different products will have different tax rebate rates, etc., which will affect the tax calculation. Moreover, trade methods, enterprise types, etc. may also have an impact on the tax calculation.

William Yang
William YangYears of service:5Customer Rating:5.0

International logistics consultantConsult

The calculation of taxes and duties for export by agent is indeed closely related to products. There are significant differences in tax rebate rates for different products. For example, the tax rebate rate for some high-tech products may be high, while that for traditional products is relatively low. When calculating taxes, it is necessary to first determine the tax rebate rate of the product.

David Li
David LiYears of service:6Customer Rating:5.0

Senior customs declaration consultantConsult

Besides products and tax rebate rates, the accuracy of the information on the customs declaration form also affects the tax calculation. For example, if the export amount is filled in incorrectly, the calculated tax refund amount will definitely be incorrect. Therefore, the information should be carefully checked during the customs declaration process.

Michelle Chen
Michelle ChenYears of service:3Customer Rating:5.0

Business coordination consultantConsult

Exchange rate fluctuations also have an impact on the taxes and duties for export by agent, because the calculation of the tax refund amount often involves the conversion of foreign exchange into RMB. Exchange rate changes may lead to differences in the tax refund amount, so attention should be paid to exchange rate changes.

Amanda Yang
Amanda YangYears of service:3Customer Rating:5.0

Cost control consultantConsult

If the agent company is involved in situations such as advancing tax payments, the cost of capital occupation also needs to be considered. Although this part is not the tax itself, it will affect the overall cost of export by agent.

Joseph Zhou
Joseph ZhouYears of service:10Customer Rating:5.0

Senior foreign trade managerConsult

When exporting by agent, the terms of the contract signed may also affect the tax calculation. For example, the agreed way of bearing costs, etc., will indirectly affect the final tax cost.

Sarah Zhang
Sarah ZhangYears of service:8Customer Rating:5.0

Document expertConsult

Different origins of goods may also affect the tax calculation in some cases, especially when it involves preferential policies such as agreed tax rates.

Andrew Huang
Andrew HuangYears of service:7Customer Rating:5.0

Supply chain optimization expertConsult

Changes in tax policies also need to be noted. Each year, there may be adjustments to policies such as the tax rebate rates of some products. The calculation of taxes should be based on the latest policies.

Emily Liu
Emily LiuYears of service:10Customer Rating:5.0

Settlement and payment expertConsult

Under some special trade methods, the calculation of taxes and duties for export by agent is different from that of general trade. For example, in the case of processing with imported materials and processing with supplied materials, etc., they should be clearly distinguished during the calculation.

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