How should the input tax of entrepot trade be handled? Does anyone who knows about it care to share?
Solved#Entrepot trade#
Our company has recently started the entrepot trade business and has some doubts regarding the input tax. We purchase goods from foreign suppliers and sell them directly to another foreign customer without domestic processing. I don't know how to handle the input tax generated in the procurement process. Can it be deducted, or are there other special regulations? I hope that experienced friends or professionals can help answer this question. Thank you!
Professional consultant answers
Elizabeth LiYears of service：3Customer Rating：5.0
Compliance and risk managerConsult
In entrepot trade, since the goods do not actually enter the domestic circulation process, generally speaking, the input tax in the procurement process cannot be deducted in the way of domestic general trade. This is because entrepot trade essentially belongs to overseas sales behavior and is not within the scope of domestic value-added tax collection.
If the company has obtained the special value-added tax invoice for entrepot trade procurement, it is recommended to communicate with the local tax authorities in a timely manner and explain the business situation in detail. Tax authorities in some regions may require enterprises to reverse the input tax amount. At the same time, enterprises should properly preserve contracts, transportation documents, payment vouchers and other materials related to entrepot trade for the tax authorities to verify, proving the authenticity and rationality of the business. Avoid tax risks caused by improper handling.
Jennifer WangYears of service：4Customer Rating：5.0
Market development consultantConsult
For the purchase of goods in entrepot trade, the input tax generally cannot be deducted. Because the goods do not enter the domestic consumption process and do not meet the domestic value-added tax deduction conditions. If it is wrongly deducted and detected by the tax authorities, the company may face the need to pay back the taxes and fines.
Robert ChenYears of service：6Customer Rating：5.0
Customer service consultantConsult
First, confirm whether the obtained invoice is compliant. The relevant input tax of entrepot trade cannot be deducted as usual. It should be correctly handled according to tax requirements, such as reversing the amount. Don't lose the big because of the small and bring tax troubles.
James LiuYears of service：10Customer Rating：5.0
Foreign trade tax refund consultantConsult
The key to handling the input tax of entrepot trade is to communicate with the tax authorities. Policies may vary in different places. Operate according to the local tax guidelines and prepare business materials to facilitate the explanation of the situation.
Emily LiuYears of service：10Customer Rating：5.0
Settlement and payment expertConsult
In entrepot trade, the input tax in the procurement process usually cannot be deducted. However, if it can be proved that it is related to domestic taxable items, there may be different handling methods. It is necessary to confirm with the tax authorities.
Andrew HuangYears of service：7Customer Rating：5.0
Supply chain optimization expertConsult
Don't easily deduct the input tax of entrepot trade. First, sort out the business process, organize the materials, consult the tax authorities, and handle it according to the requirements to ensure that the tax handling is compliant.
Michelle ChenYears of service：3Customer Rating：5.0
Business coordination consultantConsult
If the input tax of entrepot trade is not handled well, it is prone to risks. First, conduct a self-inspection of the business, then consult the tax authorities, and seek the help of professional tax consultants when necessary to handle it correctly.
Joseph ZhouYears of service：10Customer Rating：5.0
Senior foreign trade managerConsult
Generally, the input tax of entrepot trade cannot be deducted. It should be strictly in accordance with tax regulations, such as making a reversal, etc., and at the same time, preserve good business materials to deal with tax inspections.
Amanda YangYears of service：3Customer Rating：5.0
Cost control consultantConsult
For the input tax of entrepot trade procurement, it is recommended to first understand the local tax policies in detail and handle it according to the regulations. Don't operate blindly to avoid tax problems.
William YangYears of service：5Customer Rating：5.0
International logistics consultantConsult
When handling the input tax of entrepot trade, the first thing is to actively communicate with the tax authorities, handle it according to their guidance, don't make your own judgments, and avoid tax risks.