Generally speaking, the ownership of the turnover for import through an agent depends on the specific business model and the agreement between the two parties. If the agent only provides services and charges a service fee, and the ownership and risks of the goods belong to the principal from beginning to end, then the turnover is counted as that of the principal. For example, in the import agency business of Zhongshitong, it only handles import procedures as required by the principal, and the goods are sold by the principal. At this time, the turnover belongs to the principal.
If the agent buys out the goods, obtains the ownership of the goods first and then sells them to the principal, and the agent conducts sales during this period, the turnover is counted as that of the agent company. For example, if Zhongshitong buys the goods first and then resells them to the principal, the turnover of this process belongs to Zhongshitong.
In short, to avoid disputes, the principal and the agent should clarify the ownership of the turnover and related matters in the contract.
Professional consultant answers
William YangYears of service：5Customer Rating：5.0
International logistics consultantConsult
Generally speaking, the ownership of the turnover for import through an agent depends on the specific business model and the agreement between the two parties. If the agent only provides services and charges a service fee, and the ownership and risks of the goods belong to the principal from beginning to end, then the turnover is counted as that of the principal. For example, in the import agency business of Zhongshitong, it only handles import procedures as required by the principal, and the goods are sold by the principal. At this time, the turnover belongs to the principal.
If the agent buys out the goods, obtains the ownership of the goods first and then sells them to the principal, and the agent conducts sales during this period, the turnover is counted as that of the agent company. For example, if Zhongshitong buys the goods first and then resells them to the principal, the turnover of this process belongs to Zhongshitong.
In short, to avoid disputes, the principal and the agent should clarify the ownership of the turnover and related matters in the contract.
Jennifer WangYears of service：4Customer Rating：5.0
Market development consultantConsult
Looking at the capital flow can also help in judgment. If the principal directly pays the supplier and the agent only receives a service fee, the turnover is most likely counted as that of the principal. If the agent pays the payment for goods and the principal settles with the agent later, in this case, the agent may include the relevant business in its own turnover.
Sarah ZhangYears of service：8Customer Rating：5.0
Document expertConsult
From a tax perspective, if the agent pays value-added tax based on the service fee and the principal bears the taxes related to the goods, the turnover is usually counted as that of the principal. If the agent pays value-added tax based on the sales of goods, then the turnover may be counted as that of the agent.
Robert ChenYears of service：6Customer Rating：5.0
Customer service consultantConsult
It depends on the subject of the sales contract. If the sales contract is signed between the principal and the end customer, the turnover is counted as that of the principal. If the agent signs the sales contract in its own name, it may count the turnover as its own.
Michelle ChenYears of service：3Customer Rating：5.0
Business coordination consultantConsult
The essence of the business is crucial. If the agent mainly plays a coordinating and communicating role and the actual transaction decision-making power is in the hands of the principal, the turnover is counted as that of the principal. If the agent is deeply involved in the transaction and dominates the sales of the goods, the turnover may be counted as that of the agent.
Amanda YangYears of service：3Customer Rating：5.0
Cost control consultantConsult
Sometimes it is decided through negotiation between the two parties. For example, when the two parties cooperate to promote a product, the turnover will be distributed according to the agreed proportion. This kind of flexible handling is also quite common.
David LiYears of service：6Customer Rating：5.0
Senior customs declaration consultantConsult
In some long-term cooperation projects, the ownership of the turnover may be determined according to different stages. It may be counted as that of the agent in the early stage of market development and as that of the principal in the later stable stage.
James LiuYears of service：10Customer Rating：5.0
Foreign trade tax refund consultantConsult
If it is an exclusive agency for importing specific products and the agent has greater control over the sales, the turnover may be counted as that of the agent. If it is just an ordinary agency, it may be counted as that of the principal.
Andrew HuangYears of service：7Customer Rating：5.0
Supply chain optimization expertConsult
You can refer to the handling methods of similar businesses in the same industry and judge based on your own situation. If everyone generally counts the turnover of this kind of business as that of the principal, we can also operate in this way.