Who will handle the tax refund when entrusting others to handle export business?
Solved#Export tax rebate#
Our company plans to entrust others to handle the export of products, but we are a bit confused about the tax refund issue. We don't know whether it is us who will handle the tax refund or the agency. If it is the agency that handles the tax refund, how can we protect our own interests? If it is us who handle it, what is the specific process? We hope that friends who are knowledgeable in this area can help answer these questions, so that we can clearly understand the ins and outs of it and avoid problems in the future.
Professional consultant answers
David LiYears of service：6Customer Rating：5.0
Senior customs declaration consultantConsult
In the business of entrusting others to handle export, the subject of tax refund is usually determined according to the agency model. If it is the pure agency model, that is, the agency only charges agency fees, and the export declaration form, invoice and other relevant documents all show the information of the entrusting party. In this case, the entrusting party (that is, your company) shall handle the tax refund. The entrusting party needs to prepare materials such as the export goods declaration form, export invoice, and purchase invoice according to the normal export tax refund process, and declare the tax refund to the competent tax authorities within the specified time.
If it is the buyout agency model, the agency buys out the goods for export, declares the export in its own name and collects foreign exchange. In this case, the agency shall handle the tax refund. To protect the interests of the entrusting party, both parties need to clearly define various rights and obligations in the agency agreement, including responsibilities related to tax refund, payment settlement, etc. For example, in the pure agency model, the agency has the obligation to assist the entrusting party to complete the tax refund matters.
Andrew HuangYears of service：7Customer Rating：5.0
Supply chain optimization expertConsult
Generally speaking, it depends on whose name the export contract is signed in. If it is signed by the entrusting party, the entrusting party shall handle the tax refund; if it is signed by the agency, the agency shall handle the tax refund.
Michelle ChenYears of service：3Customer Rating：5.0
Business coordination consultantConsult
If it is the agency that handles the tax refund, you should stipulate in the contract how long it will take to transfer the refund to you after it is received, as well as the liability for breach of contract.
Elizabeth LiYears of service：3Customer Rating：5.0
Compliance and risk managerConsult
If you handle the tax refund yourself, you need to be familiar with the tax refund policies. For some special commodities, the tax refund requirements are different from those of ordinary commodities.
James LiuYears of service：10Customer Rating：5.0
Foreign trade tax refund consultantConsult
In the case of pure agency, it is more reliable for you to handle the tax refund yourself, which can avoid disputes with the agency over the tax refund amount.
William YangYears of service：5Customer Rating：5.0
International logistics consultantConsult
The advantage of the agency handling the tax refund is that they are more professional and may handle it faster, but you should choose an agency with good reputation.
Robert ChenYears of service：6Customer Rating：5.0
Customer service consultantConsult
Regardless of who handles the tax refund, attention should be paid to the time limit for tax refund declaration. Don't miss the time and cause the inability to get the tax refund.
Joseph ZhouYears of service：10Customer Rating：5.0
Senior foreign trade managerConsult
If the agency handles the tax refund, after they collect the foreign exchange, they should settle the payment for goods and the tax refund with you in a timely manner.
Amanda YangYears of service：3Customer Rating：5.0
Cost control consultantConsult
If you handle the tax refund yourself, you need to spend more time and energy studying the process in the early stage, but you can control the whole process.