Who should receive the money from export tax rebates for agency exports? Come and discuss together!
Solved#Export tax rebate#
My company has hired an agency company to help export products, and now there is an issue regarding export tax rebates. We and the agency company did not clarify in the contract who the tax rebate belongs to. I would like to ask who usually receives the money from the export tax rebate for agency exports? Is it our principal or the agency? If someone is to receive it, what is the specific process? I hope friends who know the ropes can help answer this. Thank you!
Professional consultant answers
Andrew HuangYears of service：7Customer Rating：5.0
Supply chain optimization expertConsult
Under normal circumstances, if the agency export business is a genuine agency, that is, the entrusted party operates in the name of the principal and the principal bears the relevant export risks, the money from the tax rebate should be received by the principal. The general process is as follows: First, the principal provides the relevant documents and materials of the exported goods to the agency, and the agency assists in organizing and filing a tax rebate application with the tax authorities. When the tax rebate amount is received, the agency will pay the tax rebate amount to the principal. However, in actual operations, there may be differences due to different agreements between the two parties. If the contract is not clear, it is recommended that the two parties negotiate and distribute the tax rebate benefits in accordance with the principle of fairness and reasonableness. If the negotiation fails, industry practices can be referred to, that is, whoever bears the procurement cost of the exported goods and the export risks, the tax rebate belongs to that party.
James LiuYears of service：10Customer Rating：5.0
Foreign trade tax refund consultantConsult
If the agency contract does not stipulate, from common sense, whoever bears the main cost of the export should receive the tax rebate. Because the tax rebate is essentially a refund of the taxes paid on the exported goods, and the principal generally bears the cost of the goods, so it is more reasonable for the tax rebate to go to the principal.
Michelle ChenYears of service：3Customer Rating：5.0
Business coordination consultantConsult
When there is no clear contract agreement, it depends on the agency method. If it is a pure agency without advancing funds or bearing risks, the tax rebate should be given to the principal. If the agency advances funds during the operation, the two parties need to negotiate the distribution of the tax rebate.
David LiYears of service：6Customer Rating：5.0
Senior customs declaration consultantConsult
Usually, the principal is responsible for purchasing the goods, and the agency only provides export operation services, so naturally the tax rebate goes to the principal. But there are also special cases. For example, if the agency has upfront investments, the two parties can discuss the distribution ratio.
Robert ChenYears of service：6Customer Rating：5.0
Customer service consultantConsult
According to industry customs, if there is no contract specification, the principal is more likely to receive the tax rebate. Because key factors such as the ownership of the exported goods are on the principal's side, and the agency only assists in handling the export procedures.
Amanda YangYears of service：3Customer Rating：5.0
Cost control consultantConsult
This depends on the actual efforts of both parties in the entire business. If the agency has helped solve many problems and increased the probability of successful export, it is reasonable to allocate some of the tax rebate. The key lies in negotiation.
William YangYears of service：5Customer Rating：5.0
International logistics consultantConsult
Generally, it is defaulted that the principal receives the tax rebate. After all, the principal is the owner of the goods. But if there is an oral agreement between the agency and the principal, or if the agency has made more efforts, then the distribution method may change.
Elizabeth LiYears of service：3Customer Rating：5.0
Compliance and risk managerConsult
In the absence of a contract agreement, it is recommended that the principal and the agency sit down and have a good discussion, and determine who the tax rebate belongs to or how to distribute it based on their respective contributions in the business.
Emily LiuYears of service：10Customer Rating：5.0
Settlement and payment expertConsult
Generally speaking, the principal receives the tax rebate. But if the agency has done a lot of extra work for the export, such as expanding the market, etc., a certain proportion of the tax rebate can be considered as compensation for the agency.