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How should a trading company engaged in export agency pay value-added tax? Come and help me answer this question!

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I work in a trading company engaged in export agency, and I'm not very clear about the value-added tax payment. Our company mainly helps domestic enterprises export products abroad on their behalf. I want to know how exactly the value-added tax is paid in this export agency business model. Is it calculated based on the sales volume of exported goods? Are there any special policies or regulations that need to be noted? I hope friends who are knowledgeable in this area can explain it in detail. Thank you!

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Professional consultant answers

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

Business coordination consultantConsult

Regarding the value-added tax payment of an export agency trading company, the first step is to distinguish the agency method. If it is a pure agency, that is, only charging agency fees without advancing funds, not bearing the quality risks of exported goods and foreign exchange settlement risks, etc., in this case, the value-added tax is paid by the entrusting party, and the agency company pays value-added tax on the agency fees according to "brokerage agency services". The tax rate for general taxpayers is 6%, and the levy rate for small-scale taxpayers is 3% (there are preferential policies during the current epidemic period).

If the agency company buys out the goods and then exports them, it is equivalent to self-exporting and should be processed according to the policies applicable to exported goods. Manufacturing enterprises are subject to the exemption, credit and refund of tax method, while foreign trade enterprises are subject to the exemption and refund of tax method. Under the exemption, credit and refund of tax method, calculate the current payable tax amount and the exempted, credited and refunded tax amount, etc.; under the exemption and refund of tax method, calculate the refundable tax amount according to the amount specified on the special value-added tax invoice for the purchased exported goods and the stipulated refund tax rate. In short, the value-added tax policies should be accurately applied according to the specific business model.

Jennifer Wang
Jennifer WangYears of service:4Customer Rating:5.0

Market development consultantConsult

For export agency business, if it is a general trade agency and the agency party only charges agency fees and the actual ownership of the goods belongs to the entrusting party, then the agency party pays value-added tax only on the agency fees part, not based on the sales volume of exported goods.

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

Document expertConsult

Remember to check the relevant tax documents, which will have a clear explanation on the value-added tax payment for export agency. Moreover, there may be minor differences in implementation in different regions, and the requirements of the local tax authorities should also be noted.

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

Supply chain optimization expertConsult

If the entrusting party is a small-scale taxpayer, when exporting on behalf of others, generally the entrusting party cannot enjoy the export tax refund policy. In this case, the value-added tax payment of the agency party also has to be carried out according to the regulations. Specifically, consult the local tax department.

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

International logistics consultantConsult

When an export agency trading company determines the value-added tax payment, it must clearly define the responsibilities and obligations with the entrusting party, such as who is responsible for customs declaration, foreign exchange collection, etc. This is related to the subject and method of value-added tax payment.

David Li
David LiYears of service:6Customer Rating:5.0

Senior customs declaration consultantConsult

In actual operation, the value-added tax should be declared accurately and in a timely manner. If it involves export tax refund, relevant materials should be submitted according to the prescribed process, otherwise it will affect the value-added tax payment and tax refund processing.

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

Compliance and risk managerConsult

Pay attention to the changes in national tax policies, such as the adjustment of refund tax rates, which will affect the relevant calculations and payments of value-added tax for export agency business. Communicate more with tax commissioners usually.

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

Senior foreign trade managerConsult

If the export agency business involves new models such as cross-border e-commerce, the rules for value-added tax payment may be different again, and it is necessary to specifically understand the regulations in this regard.

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

Settlement and payment expertConsult

The financial accounting of an export agency trading company itself should be clear, distinguishing agency fee income, collection and payment on behalf of others, etc. This is crucial for accurately paying value-added tax.

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