How should one issue an invoice for the profit from agency export? What are the points to note?
Solved#Other issues#
Our company has recently taken on several agency export businesses and is not sure how to handle profit invoicing. We used to do domestic sales business and are not familiar with the financial operations of exports. I would like to ask everyone how to issue an invoice for the profit from agency export. Should it be issued based on the full amount or the agency fee? Are there any special regulations or points to note? I hope experienced friends can explain it to me in detail. Thank you!
Professional consultant answers
Andrew HuangYears of service：7Customer Rating：5.0
Supply chain optimization expertConsult
For issuing an invoice for the profit from an agency export business, generally, an invoice is issued based on the agency fee. Because in agency export, what your company actually obtains is the remuneration for agency services, that is, the agency fee.
When issuing an invoice, first of all, ensure the accuracy of invoice information, including the company name, taxpayer identification number, address and telephone number, bank of deposit and account number, etc. The name of goods or taxable labor services should clearly indicate "Agency export service fee" or similar words.
At the same time, pay attention to the selection of the tax rate. If your company is a general taxpayer, the applicable tax rate for agency services is usually 6%; if it is a small-scale taxpayer, the collection rate is 3% (there are preferential policies during the epidemic, and the actual situation needs to be considered). In addition, after issuing the invoice, properly preserve relevant business contracts, customs declarations and other materials for inspection by the tax authorities. This not only complies with financial norms but also avoids tax risks.
Joseph ZhouYears of service：10Customer Rating：5.0
Senior foreign trade managerConsult
The invoicing of agency export profits mainly depends on the agreement with the principal. Generally, it is invoiced based on the agency fee. But if it is agreed to charge the profit as a certain percentage of the export amount, it may also be invoiced based on the amount corresponding to the percentage, depending on the contract.
Amanda YangYears of service：3Customer Rating：5.0
Cost control consultantConsult
When issuing an invoice, communicate and confirm with the tax department about the specific local requirements. Some places have special regulations for invoicing the profit from agency exports, and understanding in advance can avoid mistakes.
William YangYears of service：5Customer Rating：5.0
International logistics consultantConsult
If the agency fee involves foreign currency settlement, the invoiced amount should be converted into RMB according to the specified exchange rate. The exchange rate is generally based on the exchange rate on the day of the business occurrence or the 1st day of the month.
David LiYears of service：6Customer Rating：5.0
Senior customs declaration consultantConsult
The invoicing content should be accurate and not ambiguous. In addition to writing the agency export service fee, the specific business content of the agency can also be indicated, such as which company's export of what products is being agented.
Elizabeth LiYears of service：3Customer Rating：5.0
Compliance and risk managerConsult
Remember to check the invoice format, including the font, columns, etc., which should comply with the regulations. Otherwise, if the invoice is non-compliant and the other party refuses to accept it, it will be troublesome.
Robert ChenYears of service：6Customer Rating：5.0
Customer service consultantConsult
If the principal has special invoicing requirements, as long as they are reasonable and legal and do not violate tax regulations, they can be negotiated and met.
Sarah ZhangYears of service：8Customer Rating：5.0
Document expertConsult
After issuing the invoice, deliver it to the principal in a timely manner and keep good invoicing records for subsequent financial accounting and account reconciliation.
Jennifer WangYears of service：4Customer Rating：5.0
Market development consultantConsult
Pay attention to the remarks column of the invoice. Some regions may require filling in export - related information in the remarks column, such as the customs declaration number.