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Who is responsible for the foreign exchange collection and tax in agency export?

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Our company intends to find an agent to export products, but we are not clear about the liability attribution of foreign exchange collection and tax. We want to know who is responsible for foreign exchange collection and tax - related matters in the agency export business, the principal or the agent. If this is not clarified, we are afraid that disputes may arise later, affecting the business development. Are there any experts who can explain it in detail?

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Professional consultant answers

James Liu
James LiuYears of service:10Customer Rating:5.0

Foreign trade tax refund consultantConsult

In the agency export business, the handling of foreign exchange collection and tax is usually as follows: Generally, for foreign exchange collection, there are two common models in actual business. One is that the agent collects the foreign exchange. After receiving the foreign exchange, the agent deducts relevant fees such as agency fees and then pays the remaining amount to the principal. This is because the agent, as the operating unit for export declaration, has a relatively convenient foreign exchange collection operation in the supervision processes of the customs and the State Administration of Foreign Exchange. The other is that the principal directly collects the foreign exchange, but this requires prior negotiation with the agent and the foreign merchant and should be clearly stated in documents such as the contract.

Regarding tax, the principal generally applies for export tax rebates because the principal is the actual producer or owner of the goods, meeting the requirements for the tax - rebate subject. The agent assists in providing relevant documents such as the customs declaration form. However, if other taxes such as customs duties are involved, both parties can agree on the liable party in the agency agreement, and most are determined according to the principle of "who benefits, who bears".

Sarah Zhang
Sarah ZhangYears of service:8Customer Rating:5.0

Document expertConsult

Usually, it is more common for the agent to collect foreign exchange because the agent basically handles the export procedures, and the foreign exchange collection process will be smoother. Regarding tax, the principal generally applies for the value - added tax refund in the export link, and the agent just needs to cooperate in providing information.

William Yang
William YangYears of service:5Customer Rating:5.0

International logistics consultantConsult

If the foreign merchant agrees, the principal can directly collect foreign exchange, which makes the capital flow more direct. Regarding tax, for example, in the case of consumption tax, if it is the export of taxable consumer goods processed on a commissioned basis, it may depend on who is the consumption tax payer between the principal and the agent, and handle it according to regulations.

Elizabeth Li
Elizabeth LiYears of service:3Customer Rating:5.0

Compliance and risk managerConsult

Most of the time, the agent collects foreign exchange. After all, they are responsible for business such as customs declaration, which is also convenient for the State Administration of Foreign Exchange and other departments to count data. Regarding tax, customs duties are generally borne by the party who imports or exports the goods according to the actual ownership of the goods, and both parties can agree on it in advance.

Andrew Huang
Andrew HuangYears of service:7Customer Rating:5.0

Supply chain optimization expertConsult

From the perspective of operational convenience, the agent's foreign exchange collection is convenient for unified settlement. For taxes, additional taxes and fees such as urban construction tax and education surcharge generally follow the handling of value - added tax and consumption tax, and are borne by the party that actually enjoys the tax rebate or bears the main tax.

Michelle Chen
Michelle ChenYears of service:3Customer Rating:5.0

Business coordination consultantConsult

If the principal has the ability to collect foreign exchange by itself, it can also reduce intermediate links. Regarding tax, for small taxes such as stamp duty, both parties can negotiate and determine which party will pay, generally judged according to the business benefit situation.

Jennifer Wang
Jennifer WangYears of service:4Customer Rating:5.0

Market development consultantConsult

The agent's foreign exchange collection is more common in practice, which is convenient for unified fund management. For enterprise income tax, the principal pays it according to its own business situation and just needs to clearly account for the income and cost related to the agency export business.

Amanda Yang
Amanda YangYears of service:3Customer Rating:5.0

Cost control consultantConsult

The principal's foreign exchange collection depends on the foreign merchant's willingness, but it will be a bit more troublesome to operate. Regarding tax, if the resource tax involves the export of taxable resource products, it is borne by the principal who mines or produces the taxable products according to regulations.

David Li
David LiYears of service:6Customer Rating:5.0

Senior customs declaration consultantConsult

It is common for the agent to collect foreign exchange, which is convenient for handling subsequent affairs. Regarding tax, if the land value - added tax is involved in the transfer of relevant real estate and land in the export business, it is generally handled by the transferor, that is, the principal, according to regulations.

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