How exactly should the value - added tax (VAT) for agency import and export business be calculated? Come and help me solve this confusion!
Solved#Export agent#
My company plans to carry out agency import and export business. We haven't been exposed to this area before, so we're not very clear about the calculation of VAT. I'd like to ask how the VAT for agency import and export business is calculated. Is it the same as the calculation method for general import and export businesses, or are there special regulations? In addition, what are the points that the agent and the principal need to pay attention to respectively in the calculation of VAT? I hope someone who knows the ropes can explain it in detail. Thank you!
Professional consultant answers
Michelle ChenYears of service：3Customer Rating：5.0
Business coordination consultantConsult
The calculation of VAT for agency import and export business varies according to different situations. If the agent only charges agency fees and the principal pays the import VAT, the VAT is calculated based on the composite assessable price of the imported goods. The formula is: Composite assessable price = Customs dutiable value + Customs duties + Consumption tax (if any), and Tax payable = Composite assessable price × Tax rate. For export business, the exemption, credit, and refund method is implemented for those that meet the conditions, that is, VAT in the export link is exempted, the corresponding input tax credits are offset against the output tax of domestic sales, and the part that has not been offset is refunded.
The agent mainly needs to accurately account for the agency fee income and pay VAT as required, with a general tax rate of 6%. The principal should pay attention to the calculation and declaration of VAT for imported and exported goods to ensure that input tax credits are obtained and deducted as required or the export tax refund policy is enjoyed.
David LiYears of service：6Customer Rating：5.0
Senior customs declaration consultantConsult
If consumption tax is involved in the import link, be sure to include the consumption tax when calculating the composite assessable price for VAT calculation. Don't miss it. Otherwise, the calculated VAT will be incorrect.
Robert ChenYears of service：6Customer Rating：5.0
Customer service consultantConsult
In the export business, the agent has to help the principal prepare the relevant export tax refund materials. Otherwise, it will affect the tax refund progress. The principal should provide accurate information to the agent in a timely manner.
Joseph ZhouYears of service：10Customer Rating：5.0
Senior foreign trade managerConsult
If the agent imports in its own name and then sells to the principal, the agent should calculate and pay VAT according to the sale of goods, not just based on the agency fees.
Sarah ZhangYears of service：8Customer Rating：5.0
Document expertConsult
Pay attention to the application of tax rates. The import and export tax rates for different goods are different, and it should be based on the specific situation of the goods. Never use the wrong tax rate.
Amanda YangYears of service：3Customer Rating：5.0
Cost control consultantConsult
In terms of the declaration of import VAT, operate within the specified time limit. Otherwise, there may be problems such as late fees.
James LiuYears of service：10Customer Rating：5.0
Foreign trade tax refund consultantConsult
When dealing with the VAT of import and export business, the agent should have clear accounting treatment. Don't confuse the accounting of agency fee income and the VAT related to goods.
Jennifer WangYears of service：4Customer Rating：5.0
Market development consultantConsult
The principal should conduct comparison and declare for deduction as required for the imported VAT special payment receipts obtained. Don't make mistakes in the procedures.
William YangYears of service：5Customer Rating：5.0
International logistics consultantConsult
In the export agency business, the agent and the principal should clarify their responsibilities. If the tax refund fails due to data problems, the responsibility should be clearly defined.