The tax refund for export agency is usually handled by the entrusting party. The reason is that the entrusting party is the actual producer and seller of the goods, owns the ownership of the goods and bears the corresponding risks. From the perspective of the principles and policy regulations of value-added tax, the entrusting party should apply for the tax refund.
In terms of the process, the entrusting party needs to collect relevant documents such as the customs declaration form of exported goods, the certificate of goods exported by agent, and the special VAT invoice after the goods are declared for export at the customs and treated as sales in the financial statements, and then declare the tax refund to the competent tax authorities within the prescribed time limit.
The main responsibility of the agent is to issue the certificate of goods exported by agent to the entrusting party in a timely manner after the goods are exported and assist the entrusting party to complete the tax refund work. It should be noted that if the entrusting party is a manufacturing enterprise, the exemption, credit and refund method shall be implemented; if it is a foreign trade enterprise, the exemption and refund method shall be implemented.
Professional consultant answers
Sarah ZhangYears of service：8Customer Rating：5.0
Document expertConsult
The tax refund for export agency is usually handled by the entrusting party. The reason is that the entrusting party is the actual producer and seller of the goods, owns the ownership of the goods and bears the corresponding risks. From the perspective of the principles and policy regulations of value-added tax, the entrusting party should apply for the tax refund.
In terms of the process, the entrusting party needs to collect relevant documents such as the customs declaration form of exported goods, the certificate of goods exported by agent, and the special VAT invoice after the goods are declared for export at the customs and treated as sales in the financial statements, and then declare the tax refund to the competent tax authorities within the prescribed time limit.
The main responsibility of the agent is to issue the certificate of goods exported by agent to the entrusting party in a timely manner after the goods are exported and assist the entrusting party to complete the tax refund work. It should be noted that if the entrusting party is a manufacturing enterprise, the exemption, credit and refund method shall be implemented; if it is a foreign trade enterprise, the exemption and refund method shall be implemented.
Amanda YangYears of service：3Customer Rating：5.0
Cost control consultantConsult
Normally, it is the entrusting party that is responsible for the tax refund in the case of export agency. However, the prerequisite is that the entrusting party must have the right to engage in import and export operations and has completed the filing of export tax refund with the tax authorities. If the entrusting party does not meet these conditions, the tax refund may be more troublesome.
Michelle ChenYears of service：3Customer Rating：5.0
Business coordination consultantConsult
The agent generally does not handle the tax refund. It is only responsible for helping the entrusting party handle export-related affairs such as customs declaration and transportation. The preparation and declaration of tax refund documents are mainly the responsibilities of the entrusting party, and the agent provides some necessary documents as assistance.
William YangYears of service：5Customer Rating：5.0
International logistics consultantConsult
If the entrusting party is a small-scale taxpayer, it can only enjoy tax exemption and cannot claim tax refund. Only the entrusting party with the status of a general taxpayer may enjoy the tax refund policy. Therefore, it is crucial to confirm the taxpayer status of the entrusting party first.
James LiuYears of service：10Customer Rating：5.0
Foreign trade tax refund consultantConsult
In practice, the entrusting party should pay attention to the time limit for tax refund declaration and not miss the deadline, otherwise it may not be able to get the tax refund. Moreover, the declared documents must be true and accurate, otherwise it will face tax risks.
Emily LiuYears of service：10Customer Rating：5.0
Settlement and payment expertConsult
When the entrusting party claims the tax refund, it must ensure that the source of the goods is clear and the invoices and other vouchers are legal and compliant. Otherwise, if the tax authorities do not approve the review, the tax refund will not be obtained.
Jennifer WangYears of service：4Customer Rating：5.0
Market development consultantConsult
It is advisable to clearly define the responsibilities and obligations of both parties regarding tax refund in the export agency agreement to avoid disputes arising from tax refund issues later.
Robert ChenYears of service：6Customer Rating：5.0
Customer service consultantConsult
In some regions, the management of tax refund for export agency is strict. The entrusting party should follow the local tax requirements to standardize the operation of the tax refund process to ensure the smooth receipt of the tax refund.
Elizabeth LiYears of service：3Customer Rating：5.0
Compliance and risk managerConsult
The entrusting party should usually maintain communication with the tax authorities to keep abreast of the changes in tax refund policies so as to better handle tax refund matters.