In the export agency business, generally, it is the entrusting party that pays taxes. Because the entrusting party is the actual owner of the goods and the substantial subject of the export business activities, and the agency only provides agency services. However, the entrusting party needs to handle relevant tax matters such as export tax rebates with the certificate of exported goods on a commission basis issued by the agency.
If the exported goods on a commission basis are regarded as domestic sales, the entrusting party shall pay relevant taxes such as value-added tax according to domestic sales of goods. Moreover, different trade modes, such as general trade and processing trade, will have different regulations on tax payment details. For example, in processing trade, there are differences in tax treatment in the export link between imported materials for processing and supplied materials for processing. Product types will also have an impact. For example, for some specific products that are restricted or encouraged to be exported by some countries, their tax policies are also different. The entrusting party must understand relevant policies in advance and make good tax planning.
Professional consultant answers
Joseph ZhouYears of service：10Customer Rating：5.0
Senior foreign trade managerConsult
In the export agency business, generally, it is the entrusting party that pays taxes. Because the entrusting party is the actual owner of the goods and the substantial subject of the export business activities, and the agency only provides agency services. However, the entrusting party needs to handle relevant tax matters such as export tax rebates with the certificate of exported goods on a commission basis issued by the agency.
If the exported goods on a commission basis are regarded as domestic sales, the entrusting party shall pay relevant taxes such as value-added tax according to domestic sales of goods. Moreover, different trade modes, such as general trade and processing trade, will have different regulations on tax payment details. For example, in processing trade, there are differences in tax treatment in the export link between imported materials for processing and supplied materials for processing. Product types will also have an impact. For example, for some specific products that are restricted or encouraged to be exported by some countries, their tax policies are also different. The entrusting party must understand relevant policies in advance and make good tax planning.
Elizabeth LiYears of service：3Customer Rating：5.0
Compliance and risk managerConsult
Under normal circumstances, the entrusting party pays taxes. The agency is only responsible for agency affairs and does not undertake the obligation to pay taxes, but it should assist the entrusting party to complete relevant tax procedures.
Jennifer WangYears of service：4Customer Rating：5.0
Market development consultantConsult
If there are special agreements in the agency contract, it may be carried out according to the agreements. But if there is no agreement, it is the entrusting party that pays taxes, and various taxes should be declared according to the regulations.
James LiuYears of service：10Customer Rating：5.0
Foreign trade tax refund consultantConsult
From the perspective of tax principles, it is more reasonable for the entrusting party to pay taxes, because the entrusting party is the beneficiary of the business, and it is also convenient to calculate costs and benefits when paying taxes.
Amanda YangYears of service：3Customer Rating：5.0
Cost control consultantConsult
Mostly, the entrusting party pays taxes. However, it should be noted that relevant documents such as the export certificate of the agency should be obtained in time for its own tax declaration and tax rebate.
Michelle ChenYears of service：3Customer Rating：5.0
Business coordination consultantConsult
The agency usually does not involve paying taxes. It just helps the entrusting party handle the export process, and the entrusting party pays taxes normally according to the nature of goods export.
Emily LiuYears of service：10Customer Rating：5.0
Settlement and payment expertConsult
The entrusting party pays taxes. If the entrusting party is a small-scale taxpayer, the tax calculation method may be different from that of a general taxpayer.
Sarah ZhangYears of service：8Customer Rating：5.0
Document expertConsult
Regardless of what products or trade modes, by default, the entrusting party pays taxes. Special situations will be adjusted according to the contract agreements and tax policies.
David LiYears of service：6Customer Rating：5.0
Senior customs declaration consultantConsult
When the entrusting party pays taxes, it should accurately calculate the amount of tax payable or refundable according to the product tax rebate rate and trade type.