What taxes need to be declared for agency exports? Does anyone know?
Solved#Export agent#
Our company plans to find an agency to export products, and we don't know much about the tax declaration involved in agency exports. I'd like to know what taxes are generally required to be declared during the agency export process? Is it declared by the agency or by us? I hope you can explain it in detail. What are the declaration requirements and procedures for each type of tax? Will there be differences due to different product types? Please, friends who are knowledgeable in this area, help answer these questions. Thank you!
Professional consultant answers
Emily LiuYears of service：10Customer Rating：5.0
Settlement and payment expertConsult
Agency exports generally involve value-added tax and customs duties.
Regarding value-added tax, if the goods exported by the agency fall within the scope of value-added tax liability and meet the conditions for export tax refund (exemption), export tax refunds can be processed. The agency is responsible for handling the export goods tax refund (exemption) declaration to the competent tax authorities and needs to provide relevant export vouchers, such as export declarations, export invoices, etc. If the refund conditions are not met, value-added tax needs to be paid as if it were domestic sales.
Regarding customs duties, the consignor or consignee of the imported and exported goods or their agents (that is, the agency) need to declare customs duties to the customs. When declaring, relevant information about the goods should be truthfully provided, such as the name, quantity, and value of the goods. The customs calculates customs duties based on the classification of the goods and the tax rate. Different products have different customs duty rates due to different customs codes. Different product types also result in different value-added tax refund rates and whether the refund conditions are met.
William YangYears of service：5Customer Rating：5.0
International logistics consultantConsult
In addition to value-added tax and customs duties, agency exports may sometimes also involve consumption tax. If the exported products fall within the scope of consumption tax liability, such as cosmetics, tobacco, and alcohol, consumption tax also needs to be declared. Generally, the agency is responsible for handling the consumption tax declaration, and the process is similar to that of the value-added tax export tax refund declaration, and corresponding materials need to be provided.
Elizabeth LiYears of service：3Customer Rating：5.0
Compliance and risk managerConsult
As for the declaring entity, in most cases, it is the agency that is responsible for declaring relevant taxes and fees. Because the agency handles the export business process and is more familiar with the declaration requirements and providing materials. However, in actual operations, both parties can also clearly define the division of responsibilities in the agency agreement.
James LiuYears of service：10Customer Rating：5.0
Foreign trade tax refund consultantConsult
Regarding the value-added tax declaration, attention should be paid to the time nodes. Generally, after the goods are declared for export at the customs and are treated as sales in financial terms, the tax refund (exemption) should be declared within the prescribed period. Late declaration may affect the tax refund and may even result in being taxed as if it were domestic sales.
Robert ChenYears of service：6Customer Rating：5.0
Customer service consultantConsult
When declaring customs duties, the classification of the goods is crucial as it determines the applicable tax rate. Incorrect classification will lead to incorrect calculation of customs duties and may face customs penalties. Therefore, the category to which the product belongs should be accurately determined.
Michelle ChenYears of service：3Customer Rating：5.0
Business coordination consultantConsult
For agency exports in some special areas, such as bonded areas, there may be special policies for tax declaration, which should be understood in advance and operated in accordance with the regulations.
Sarah ZhangYears of service：8Customer Rating：5.0
Document expertConsult
When declaring export tax refunds, it should be ensured that all types of vouchers are genuine, valid, and complete. If there are problems with the vouchers, the tax refund application may be rejected.
David LiYears of service：6Customer Rating：5.0
Senior customs declaration consultantConsult
Agency export tax declarations may also involve local surtaxes and fees, such as urban maintenance and construction tax, education surcharges, etc., which are calculated based on the value-added tax amount.
Joseph ZhouYears of service：10Customer Rating：5.0
Senior foreign trade managerConsult
If the exported products enjoy preferential tax policies, proof materials should be submitted as required when declaring, otherwise, the preferential treatment may not be enjoyed.