Tax payment for proxy exports should be considered case by case. Generally, for VAT, if the entrusting party is a production enterprise and adopts the exemption, credit, and refund method, the entrusting party declares the tax refund, and the proxy party is not involved in VAT payment. If the entrusting party is a foreign trade enterprise and adopts the exemption and refund method, the entrusting party also handles the tax refund. For consumption tax, if the goods are subject to consumption tax, the entrusting party applies to the competent tax authority for a refund of the paid consumption tax.
Usually, the entrusting party is responsible for tax payment, while the proxy party only pays VAT on the agency service, classified as modern services—business support services under brokerage agency services, with a general tax rate of 6% (3% for small-scale taxpayers, possibly with current policy discounts).
In terms of the tax payment process, the entrusting party follows the normal export tax refund procedure and needs to prepare documents such as customs declarations and invoices. Special policies may include additional tax incentives for specific product exports in certain regions. Precautions include clarifying responsibilities between the entrusting and proxy parties and preserving relevant documents to avoid refund delays due to incomplete documentation.
Professional consultant answers
Jennifer WangYears of service：4Customer Rating：5.0
Market development consultantConsult
Tax payment for proxy exports should be considered case by case. Generally, for VAT, if the entrusting party is a production enterprise and adopts the exemption, credit, and refund method, the entrusting party declares the tax refund, and the proxy party is not involved in VAT payment. If the entrusting party is a foreign trade enterprise and adopts the exemption and refund method, the entrusting party also handles the tax refund. For consumption tax, if the goods are subject to consumption tax, the entrusting party applies to the competent tax authority for a refund of the paid consumption tax.
Usually, the entrusting party is responsible for tax payment, while the proxy party only pays VAT on the agency service, classified as modern services—business support services under brokerage agency services, with a general tax rate of 6% (3% for small-scale taxpayers, possibly with current policy discounts).
In terms of the tax payment process, the entrusting party follows the normal export tax refund procedure and needs to prepare documents such as customs declarations and invoices. Special policies may include additional tax incentives for specific product exports in certain regions. Precautions include clarifying responsibilities between the entrusting and proxy parties and preserving relevant documents to avoid refund delays due to incomplete documentation.
Andrew HuangYears of service：7Customer Rating：5.0
Supply chain optimization expertConsult
For tax payment in proxy exports, first review the contract agreement between both parties to clarify the taxpayer entity. Generally, the proxy company only pays taxes on the agency fee, such as VAT under brokerage agency services as mentioned earlier. However, if the contract is unclear, tax disputes may arise later.
Emily LiuYears of service：10Customer Rating：5.0
Settlement and payment expertConsult
If the entrusting party qualifies for an export tax refund, it must declare the refund promptly; otherwise, delays may result in losing the refund policy benefit, causing losses. The proxy company should assist the entrusting party in organizing relevant documents to facilitate tax declaration.
Sarah ZhangYears of service：8Customer Rating：5.0
Document expertConsult
During tax declaration, ensure data accuracy, such as export amounts and tax figures. Errors may lead to tax risks, affecting refunds and potentially incurring penalties.
Elizabeth LiYears of service：3Customer Rating：5.0
Compliance and risk managerConsult
Some product exports may involve tariffs. Understand the tariff policies in advance to check for possible exemptions, as this significantly impacts costs.
David LiYears of service：6Customer Rating：5.0
Senior customs declaration consultantConsult
Maintain complete records of tax payments for proxy exports, whether for the entrusting or proxy party. Tax authorities may conduct audits later, and proper records can prevent many issues.
Joseph ZhouYears of service：10Customer Rating：5.0
Senior foreign trade managerConsult
Monitor exchange rate fluctuations, as export business involves foreign currency settlements. Rate changes affect export income and tax calculations, so choose an appropriate exchange rate conversion method.
Amanda YangYears of service：3Customer Rating：5.0
Cost control consultantConsult
Both the entrusting and proxy parties should stay updated on tax policy changes, such as adjustments to refund policies, to adapt business operations and tax declaration strategies promptly.
William YangYears of service：5Customer Rating：5.0
International logistics consultantConsult
For companies new to proxy exports, consulting a professional tax advisor is recommended to accurately grasp tax payment essentials and avoid unnecessary detours.