To whom should the export tax rebate be paid? Help me find the answer!
Solved#Export tax rebate#
Our company exported goods through Zhongshitong Agency, and now there is an issue regarding the ownership of the export tax rebate. I’m not entirely sure whether the rebate should go to us (the principal) or to the agent, Zhongshitong. Some say the party who paid the VAT should receive the rebate, while others argue it depends on the agency agreement. I’d like to ask professionals: in such an agency export scenario, who should the export tax rebate rightfully belong to?
Professional consultant answers
Joseph ZhouYears of service：10Customer Rating：5.0
Senior foreign trade managerConsult
Generally, the ownership of the export tax rebate in agency export cases depends on specific circumstances. If the agency export business complies with the conditions for entrusted agency export as stipulated by the State Taxation Administration, and the agent (Zhongshitong) applies for and issues an export goods certificate to the principal after exporting the goods, then the rebate belongs to the principal. This is because the principal is the actual exporter of the goods and bears the VAT burden.
However, if the agency agreement includes special provisions that do not violate relevant laws and regulations, those provisions shall prevail. For example, if the agreement states that the agent (Zhongshitong) receives the rebate as part of its service compensation, then the agreement should be followed. In summary, under normal and compliant operations, the rebate belongs to the principal unless otherwise specified in the agreement.
Robert ChenYears of service：6Customer Rating：5.0
Customer service consultantConsult
If the principal provides all export documentation and bears the risks of export, logically the rebate should go to the principal, as the goods belong to them.
Andrew HuangYears of service：7Customer Rating：5.0
Supply chain optimization expertConsult
It depends on financial handling. If the VAT invoice is issued to the principal and the principal accounts for the export sales, the rebate will likely go to the principal.
Elizabeth LiYears of service：3Customer Rating：5.0
Compliance and risk managerConsult
In practice, if Zhongshitong only provides agency services and does not assume risks like product quality or foreign exchange settlement, the rebate should belong to the principal.
David LiYears of service：6Customer Rating：5.0
Senior customs declaration consultantConsult
If the agency agreement is unclear, according to tax regulations and industry practices, the rebate usually goes to the principal, as they own the goods.
Emily LiuYears of service：10Customer Rating：5.0
Settlement and payment expertConsult
When the principal handles customs declaration, foreign exchange collection, etc., the rebate typically belongs to the principal.
Jennifer WangYears of service：4Customer Rating：5.0
Market development consultantConsult
If Zhongshitong only assists with export procedures without involving substantive changes like ownership, the rebate should go to the principal.
Michelle ChenYears of service：3Customer Rating：5.0
Business coordination consultantConsult
From a tax logic perspective, the party bearing the domestic VAT on exported goods is entitled to the rebate, which is usually the principal.
William YangYears of service：5Customer Rating：5.0
International logistics consultantConsult
If the principal participates in the entire export process, from procurement to sales, the rebate naturally belongs to them.
Sarah ZhangYears of service：8Customer Rating：5.0
Document expertConsult
If Zhongshitong only charges an agency fee without other special agreements, the rebate should belong to the principal.