Does re - export trade need to report value - added tax? Come and find out!
Solved#Entrepot trade#
Our company recently plans to carry out re - export trade business and is not very clear about the tax policies in this regard. I would like to ask, does re - export trade need to report value - added tax? If so, what is the specific declaration process? Are there any special regulations or preferential policies? I hope that professionals can help answer these questions so that we can make preparations in advance and avoid potential tax risks.
Professional consultant answers
Andrew HuangYears of service：7Customer Rating：5.0
Supply chain optimization expertConsult
In general, re - export trade does not need to report value - added tax. Re - export trade refers to the situation where the country of origin and the country of consumption of goods do not directly trade goods, but trade through a third country. Since the goods do not actually enter China's customs territory, no value - added tax taxable behavior occurs in China.
From the principle of value - added tax, it is levied on the behaviors of selling goods within the territory or providing processing, repair and replacement services, etc. The goods in re - export trade do not circulate and increase in value in China, so they do not fall within the scope of value - added tax levy.
However, it should be noted that if the re - export trade is improperly operated, such as the situation where the goods are stored in China for a short time, it may lead to tax disputes. Enterprises should keep relevant contracts, logistics documents and other materials to prove the authenticity of the business and that the goods have not actually entered the country, ensuring compliance with tax treatment.
Michelle ChenYears of service：3Customer Rating：5.0
Business coordination consultantConsult
No need to report value - added tax. Re - export trade mainly involves tariffs, etc. Value - added tax is for the domestic circulation link, and the goods in re - export trade do not circulate in China, so there is no need to pay it.
James LiuYears of service：10Customer Rating：5.0
Foreign trade tax refund consultantConsult
Re - export trade does not involve domestic value - added tax taxable behaviors, but relevant materials such as transportation documents and transaction contracts should be properly retained for verification by the tax department.
William YangYears of service：5Customer Rating：5.0
International logistics consultantConsult
Re - export trade usually does not report value - added tax because the goods do not enter the domestic customs territory and do not increase in value in China, not meeting the conditions for value - added tax collection.
Joseph ZhouYears of service：10Customer Rating：5.0
Senior foreign trade managerConsult
No need to report value - added tax. The goods in re - export trade only transit through a third country, are not consumed and do not increase in value in China, so there is no need to pay value - added tax.
Elizabeth LiYears of service：3Customer Rating：5.0
Compliance and risk managerConsult
Re - export trade does not need to report value - added tax because value - added tax is levied on domestic sales, and re - export trade does not meet this condition.
Amanda YangYears of service：3Customer Rating：5.0
Cost control consultantConsult
Generally speaking, re - export trade does not need to report value - added tax. The goods do not increase in value and circulate in China. Enterprises only need to pay attention to retaining materials to prove the authenticity of the business.
Jennifer WangYears of service：4Customer Rating：5.0
Market development consultantConsult
Re - export trade does not report value - added tax. Its goods do not conduct value - added transactions in China, so it does not fall within the scope of value - added tax declaration.
David LiYears of service：6Customer Rating：5.0
Senior customs declaration consultantConsult
Re - export trade does not need to report value - added tax. As long as the business complies with regulations and the goods do not actually enter the country, it does not involve value - added tax.
Emily LiuYears of service：10Customer Rating：5.0
Settlement and payment expertConsult
Re - export trade usually does not need to declare value - added tax because no taxable value - added activities occur to the goods in China.