Who on earth should the export tax rebate for foreign trade agency go to? Come and find out!
Solved#Export tax rebate#
Our company exports products through a foreign trade agency, and now it involves the issue of export tax rebate. I'd like to know whether this export tax rebate should go to us, the consignor, or to the foreign trade agency? There are no specific and clear provisions regarding this in the contract we signed with the agency. How should we judge in this situation? Will the attribution of the export tax rebate be affected by other factors as well? I hope to get a professional answer.
Professional consultant answers
Amanda YangYears of service：3Customer Rating：5.0
Cost control consultantConsult
Generally speaking, the export tax rebate for foreign trade agency goes to the consignor. This is because the consignor is the actual producer or purchaser of the goods and has borne the costs and related taxes of the goods. The export tax rebate is essentially a refund of the value-added tax, etc. that it has already paid.
If the contract doesn't clearly stipulate, according to the normal business logic, the tax rebate amount should go back to the consignor. Because the main responsibility of the foreign trade agency is to provide agency services and assist in completing the export process, and it is not the actual rights and interests holder of the goods.
However, there is an exception. If the foreign trade agency exports the goods in its own name and bears the foreign exchange collection risks, etc. on its own, it may be recognized as the subject of the export tax rebate. But in the common agency export model, the consignor is the real recipient of the tax rebate. So, in your situation where the contract is not clear, it is recommended that you negotiate amicably with the agency to clarify the attribution of the tax rebate and avoid subsequent disputes.
David LiYears of service：6Customer Rating：5.0
Senior customs declaration consultantConsult
Usually it goes to the consignor. After all, the consignor is the owner of the product, and the agent only provides services and has no reason to receive the tax rebate.
Andrew HuangYears of service：7Customer Rating：5.0
Supply chain optimization expertConsult
It mainly depends on who is the subject of the export sales. Generally, the consignor undertakes production, procurement, etc., and is the recipient of the tax rebate.
William YangYears of service：5Customer Rating：5.0
International logistics consultantConsult
If the agent is only purely acting as an export agent, the tax rebate should go to the consignor. If the contract doesn't stipulate, it can be resolved through negotiation.
James LiuYears of service：10Customer Rating：5.0
Foreign trade tax refund consultantConsult
In most cases, the consignor receives the tax rebate because the generation of the value of the goods and the payment of related taxes are mainly by the consignor.
Elizabeth LiYears of service：3Customer Rating：5.0
Compliance and risk managerConsult
Generally, it is defaulted to go to the consignor, unless the agent has undertaken special responsibilities and risks, which may change the situation.
Jennifer WangYears of service：4Customer Rating：5.0
Market development consultantConsult
According to common sense, the consignor provides the goods, and the export tax rebate should naturally go to the consignor.
Michelle ChenYears of service：3Customer Rating：5.0
Business coordination consultantConsult
Usually it goes to the consignor. The agent is only responsible for the process operation, and the tax rebate has little to do with them.
Joseph ZhouYears of service：10Customer Rating：5.0
Senior foreign trade managerConsult
Generally speaking, the export tax rebate is refunded to the actual owner of the goods, that is, the consignor.