In the process of agency import, who should pay the value - added tax?
Solved#Import agent#
Our company plans to import a batch of goods through an agency company. Currently, we are not very clear about the value - added tax payment part. We want to ask who should pay the value - added tax in the agency import business, whether it is our principal or the agent? Are there any special regulations or different situations in this regard? We hope you can explain it in detail so that we can make preparations in advance.
Professional consultant answers
Jennifer WangYears of service：4Customer Rating：5.0
Market development consultantConsult
In the agency import business, generally, the consignee of the imported goods or the unit and individual handling the customs declaration formalities shall pay the value - added tax. If the agent acts in the name of the principal, and the principal bears the relevant import costs and risks, and the agent is only responsible for handling customs declaration and other procedures, in this case, the principal is the taxpayer of the value - added tax.
If the agent imports the goods in its own name, even if the goods are finally delivered to the principal, the agent also needs to bear the value - added tax liability. In addition, if both parties sign an agency import agreement and clearly stipulate the main body of value - added tax payment, as long as it does not violate laws and regulations, it should also be implemented according to the agreement. In short, factors such as the essence of the business and the contract agreement should be comprehensively considered to determine the main body of value - added tax payment.
Sarah ZhangYears of service：8Customer Rating：5.0
Document expertConsult
Usually, look at the customs declaration form. Whoever is the operating unit for the import customs declaration shall pay the value - added tax. If the principal is the operating unit, the principal pays; conversely, if the agent is the operating unit, the agent pays.
Emily LiuYears of service：10Customer Rating：5.0
Settlement and payment expertConsult
In actual operation, if the agent collects and pays the payment for goods, etc., does not advance funds, and does not bear the sales risk, it is more likely that the principal pays the value - added tax. But it still depends on the specific situation.
James LiuYears of service：10Customer Rating：5.0
Foreign trade tax refund consultantConsult
Generally, according to the regulations, whoever obtains the special payment letter for customs - imported value - added tax is responsible for paying and deducting the value - added tax. So it depends on who the payment letter is issued to.
Amanda YangYears of service：3Customer Rating：5.0
Cost control consultantConsult
If the agent only provides agency services purely, charges agency fees, and the rights and responsibilities related to the imported goods belong to the principal, it is more reasonable for the principal to pay the value - added tax.
Robert ChenYears of service：6Customer Rating：5.0
Customer service consultantConsult
Sometimes the tax authorities will judge based on the overall situation of the business. If the agent dominates the import process and controls the goods, it may be determined that the agent pays the value - added tax.
David LiYears of service：6Customer Rating：5.0
Senior customs declaration consultantConsult
From the perspective of financial and tax habits, if the principal directly participates in procurement pricing, etc., usually the probability of the principal paying the value - added tax is high.
William YangYears of service：5Customer Rating：5.0
International logistics consultantConsult
When judging who pays the value - added tax, the terms of the trade contract are crucial. You need to carefully check the agreement on the rights and obligations of both parties and tax assumption in the contract.
Elizabeth LiYears of service：3Customer Rating：5.0
Compliance and risk managerConsult
If the agent has the import operation right and declares the import in its own name, basically the agent pays the value - added tax.
Michelle ChenYears of service：3Customer Rating：5.0
Business coordination consultantConsult
If the accounting of the principal and the agent is clear, and it can be proved that the goods essentially belong to the principal, it is more reasonable for the principal to pay the value - added tax.