Our company recently took on an agency import business, and we’ve never done this before. We’re completely clueless about how to pay taxes for agency import business. What standards apply? What taxes need to be paid? Are there any special points to note? We’d appreciate a detailed explanation from someone knowledgeable. Thanks!
Our company plans to find an agent to handle the import business. We are confused about who should handle the customs declaration for the agency import business, whether it should be the consignor (ourselves) or the agent. At the same time, we want to know the precautions for customs declaration. The best answer states that the customs declaration entity depends on the agreement in the agency agreement between the two parties. If the agent handles the customs declaration, it can be more efficient. If the consignor has the qualifications and is familiar with the goods, it can also handle the customs declaration by itself. Whoever handles the customs declaration must ensure the accuracy of the information and clarify the division of responsibilities.
Those engaged in foreign trade business would like to know the ways of apportioning the freight of export agency. The best answer states that it is commonly apportioned according to the proportion of weight, volume, and value of the goods. For heavy goods, it is apportioned by weight; for bulky goods, by volume; and for goods with significant differences in value, by the proportion of the value of the goods. When choosing, one should consider the characteristics of the goods, the contract stipulations, and also pay attention to the additional costs, which should be reasonably apportioned to the cost of the goods.
The company has export agency business and is unsure how to calculate the stamp duty for export agency services, asking whether it is based on the contract amount or if there are other methods. The best answer states that the stamp duty for export agency is often calculated based on the amount stated in the export agency contract. If the contract separately records the agency fee and the goods amount, the stamp duty is calculated at the respective rates of 0.03% for different tax categories. If not separately recorded, the stamp duty is calculated at the "sales contract" rate of 0.03%. An example is provided, emphasizing that local tax regulations should be followed.
The company imports goods through an agency company and doesn't know how to deduct the VAT on agency imports. It asks about the materials to be prepared and the process. The best answer states that it is necessary to obtain the Special Payment Voucher for Customs Import VAT. Depending on the situation in the "Payment Unit (Person)" column, the party that obtains the original can certify and deduct according to regulations within 360 days from the date of issue. At the same time, relevant materials should be kept properly.
Our company plans to entrust others to handle the export of products, but is confused about whether the subject of tax refund is ourselves or the agency. The best answer points out that in the pure agency model, the entrusting party shall handle the tax refund, and relevant materials need to be prepared and declared to the tax authorities according to the process; in the buyout agency model, the agency shall handle the tax refund. At the same time, it is emphasized that both parties should clearly define their rights and obligations in the agreement to protect the interests of the entrusting party.
The company hires an agency company to handle export business. The goods have been exported, and the payment is about to arrive. There is a doubt about whether the payment should go to the agency company or the principal, as well as the relevant processes and precautions. The best answer indicates that the flow of the payment is determined by the agency agreement. Commonly, foreign customers first pay to the agency company, which then transfers the money to the principal after deducting agency fees and other expenses. The principal should clarify the settlement details in the agreement. The key is to execute according to the agreement and maintain communication.
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Professional consultant answers
Amanda YangYears of service：3Customer Rating：5.0
Cost control consultantConsult
Tax payment for agency import business is as follows:
First, VAT is required. Generally, customs will levy VAT on imported goods. If the agency import company has withholding obligations, it must withhold and remit import-stage VAT as per regulations and can deduct it using the customs import VAT special payment certificate. However, if the client is a small-scale taxpayer, this input tax cannot be deducted.
Next is customs duty. The tariff rate varies depending on the type of imported goods, and the payable amount is calculated by multiplying the customs-assessed dutiable value by the corresponding tariff rate. The agency import company may need to pay the customs duty on behalf of the client.
Additionally, consumption tax may be involved. For specific taxable consumer goods, such as high-end cosmetics, tobacco, and alcohol, consumption tax is levied at the import stage, which may also be withheld and remitted by the agency import company.
Special attention should be paid to accurately declaring goods information during tax payment to ensure the tax basis is correct; otherwise, tax risks may arise. At the same time, relevant tax payment vouchers and documents should be properly retained for future verification.
William YangYears of service：5Customer Rating：5.0
International logistics consultantConsult
For agency import business, VAT and customs duty are usually required. VAT depends on how customs assesses it, while customs duty is calculated based on the applicable tariff rate for the goods. Make sure to declare all information clearly as required.
Emily LiuYears of service：10Customer Rating：5.0
Settlement and payment expertConsult
Mainly focus on VAT and possible consumption tax. VAT should be withheld and remitted according to the prescribed process, while consumption tax only applies to specific goods. It’s important to clarify the category of imported goods.
James LiuYears of service：10Customer Rating：5.0
Foreign trade tax refund consultantConsult
Tax payment depends on the type of imported goods. For general goods, it’s mainly VAT and customs duty. Just calculate the tax amount accurately based on the customs-assessed price and other information, and make sure not to make any data errors.