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How to pay taxes for goods exported through an agent? Does anyone know?

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Our company plans to export goods through an agent and doesn't quite understand the regulations and operation procedures regarding tax payment. I'd like to ask how exactly we should pay taxes for goods exported through an agent? Is it the agent who pays or us, the consignor? What types of taxes are involved? And what is the basis for calculating taxes? I hope that friends who are knowledgeable in this area can explain it in detail so that I can have a clear understanding and avoid any tax problems in the future.

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Professional consultant answers

Elizabeth Li
Elizabeth LiYears of service:3Customer Rating:5.0

Compliance and risk managerConsult

The tax payment situation for goods exported through an agent needs to be considered on a case-by-case basis. Firstly, in terms of VAT, if the consignor is a manufacturing enterprise and the goods are self-produced, the "exemption, credit, and refund" tax method is implemented, that is, the VAT on the export link is exempted, the corresponding input tax amount is offset against the taxable amount of domestic sales of goods, and the un-offset portion is refunded; if the consignor is a foreign trade enterprise, generally the "levy first and refund later" method is implemented, where taxes are levied according to regulations first, and after the goods are exported, a refund application is made with relevant vouchers.

For consumption tax, if the goods are subject to consumption tax, the consignor pays the consumption tax when commissioning processing or reclaiming for sale, and if the conditions are met, a refund can be applied for after export, and generally the consignor declares for the refund.

The tax-paying entity usually depends on the consignment agency agreement. In actual operation, generally the consignor bears the tax liability, but the agent is obligated to assist in handling relevant tax matters.

Sarah Zhang
Sarah ZhangYears of service:8Customer Rating:5.0

Document expertConsult

Generally speaking, VAT and consumption tax are the main types of taxes involved. Specifically, the basis for calculating VAT is based on the free-on-board price of exported goods, etc.; consumption tax is calculated based on the sales amount or sales quantity of taxable consumer goods.

Amanda Yang
Amanda YangYears of service:3Customer Rating:5.0

Cost control consultantConsult

If the consignor is a small-scale taxpayer, the VAT on exported goods is subject to an exemption policy and no refund application is processed.

Robert Chen
Robert ChenYears of service:6Customer Rating:5.0

Customer service consultantConsult

In actual operation, it is necessary to collect and organize relevant tax declaration materials such as customs declarations and invoices in a timely manner so as to accurately pay taxes and apply for refunds.

William Yang
William YangYears of service:5Customer Rating:5.0

International logistics consultantConsult

When paying taxes for goods exported through an agent, attention should be paid to changes in tax policies, such as adjustments to the refund rate, which will affect the enterprise's tax costs.

Emily Liu
Emily LiuYears of service:10Customer Rating:5.0

Settlement and payment expertConsult

It is advisable for the agent and the consignor to clearly define the division of tax-related responsibilities in the agreement to avoid disputes.

Joseph Zhou
Joseph ZhouYears of service:10Customer Rating:5.0

Senior foreign trade managerConsult

When applying for a refund, attention should be paid to the declaration deadline, as exceeding the deadline may result in the inability to enjoy the refund benefits.

Michelle Chen
Michelle ChenYears of service:3Customer Rating:5.0

Business coordination consultantConsult

For businesses involving the processing of imported materials for re-export, the calculation of tax payment and refund is more complicated and requires special attention.

Andrew Huang
Andrew HuangYears of service:7Customer Rating:5.0

Supply chain optimization expertConsult

Whether it is the consignor or the agent, both should do a good job in tax accounting to ensure the accuracy of data.

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