To Which Party Should the Export Tax Refunds for Agency Exports Actually Go?
Solved#Export tax rebate#
Our company has engaged an agency company to help export products. Now it involves the issue of export tax refunds. We are not quite sure whether these tax refunds should actually go to us, the entrusting party, or to the agency party. This part of the content is not clearly written in the agency contract either. In such a situation, are there any relevant regulations to define the attribution of the tax refunds? If it is to be resolved through negotiation, what principles are generally more appropriate to follow? We hope that friends who are knowledgeable in this area can help answer this question. Thank you!
Professional consultant answers
Joseph ZhouYears of service：10Customer Rating：5.0
Senior foreign trade managerConsult
Generally speaking, in the agency export business, the export tax refunds should belong to the entrusting party. Because the entrusting party is the actual exporter and seller of the goods, it bears the costs of production, procurement, etc. of the goods. The export tax refund is essentially a refund of the value-added tax and other taxes that it has already paid. Even if the agency contract does not clearly stipulate, from the essence of the business, the tax refunds should also go to the entrusting party.
Of course, if the agency party has advanced tax payments during the agency process, it can negotiate with the entrusting party, and the entrusting party will pay the corresponding amount to the agency party. This part of the amount is not the tax refunds themselves. If it is resolved through negotiation, usually the principle of "Whoever Bears the Tax Burden Gets the Tax Refunds" is followed, that is, since the entrusting party has borne the relevant tax burden before the export of the goods, the tax refunds should naturally belong to the entrusting party.
At the same time, it is recommended that you supplement and the agency contract as soon as possible, clearly stipulating important clauses such as the attribution of tax refunds, to avoid subsequent disputes.
Michelle ChenYears of service：3Customer Rating：5.0
Business coordination consultantConsult
Usually, the tax refunds go to whoever exports the goods. The entrusting party provides the goods, so it should go to the entrusting party.
Amanda YangYears of service：3Customer Rating：5.0
Cost control consultantConsult
If the agency party only provides services and does not bear the tax costs related to exports, the tax refunds should belong to the entrusting party. This is quite reasonable.
Elizabeth LiYears of service：3Customer Rating：5.0
Compliance and risk managerConsult
According to industry practices, in most cases, the export tax refunds for agency exports go to the entrusting party. After all, the entrusting party is the main body of the business.
David LiYears of service：6Customer Rating：5.0
Senior customs declaration consultantConsult
I think it mainly depends on who signs the sales contract with the foreign merchant. Generally, the party that signs the contract the business, and the tax refunds may go to that party, most likely the entrusting party.
Robert ChenYears of service：6Customer Rating：5.0
Customer service consultantConsult
Normally, the entrusting party gets the tax refunds. The agency party only helps handle the export procedures and is not involved in the ownership of the goods and the bearing of tax burdens.
Jennifer WangYears of service：4Customer Rating：5.0
Market development consultantConsult
From the actual situation, the goods belong to the entrusting party, and the costs are also borne by the entrusting party. It is more logical for the tax refunds to go to the entrusting party.
Andrew HuangYears of service：7Customer Rating：5.0
Supply chain optimization expertConsult
If there is no special agreement, according to the understanding, the tax refunds belong to the entrusting party, and the agency party should not take them.
Sarah ZhangYears of service：8Customer Rating：5.0
Document expertConsult
Generally, it is that the tax refunds go to the entrusting party. If the agency party wants to get a share, it must have special contributions or agreements.