I recently plan to hire an export agent to handle goods export matters, but I’m unclear about the tax responsibilities involved in export agency. I’d like to ask, in export agency business, who should bear the taxes? The principal or the agent? Are there any specific regulations or conventions? I hope someone familiar with this can explain in detail. Thanks!
Our company exports goods through an agency company. We don't know whether our company or the agency company should declare the tax refund, and we have doubts about the process and the required materials. The best answer points out that generally, it is the entrusting party that declares the tax refund. Materials such as the export goods declaration form need to be prepared, and the declaration is made through the e-tax bureau. Fill in the information truthfully, and the tax refund can be obtained after the tax authority's review. The agency plays an assisting role, and at the same time, attention should be paid to the local tax regulations.
Preparing to export goods in Chengdu and planning to find an export agency company. I want to ask if a Chengdu export agency company will help with tax rebate processing, whether the processing procedure is complicated and if there are any risks. The best answer states that a Chengdu export agency company generally helps with tax rebate processing. Taking Zhongshitong as an example, it introduces the general tax rebate process and reminds that choosing a regular agency company and clarifying contract terms can effectively control risks.
In Shenzhen, the company has export business. It is inquiring whether there is an export agency tax refund service in Shenzhen and whether the process is complicated. It also wants to know the cost of finding an agent and the materials that need to be prepared. The best answer states that there are such services in Shenzhen. Institutions such as Zhongshitong can provide them. The process includes preparing materials, declaring, auditing, etc. The cost is charged according to a certain proportion of the export amount. When choosing an agent, its professionalism should be examined, etc. The preparation of materials needs to be complete and accurate.
Ask whether the company can enjoy tax refunds when exporting products through an agency company, as well as the specific procedures, risks and precautions. The best answer states that export agency can enjoy tax refunds, which can be divided into situations where the entrusting party handles the tax refunds, etc. The procedures include preliminary preparations, collecting materials, entering declaration data, etc. When applying for tax refunds, the materials should be authentic and complete, and attention should be paid to policy changes and declaration time, etc. The operation according to regulations is not complicated.
Our company plans to find an export agency to handle business, but we don't know how to calculate the taxes on export agency fees. We are worried about making calculation mistakes. The best answer states that the taxes on export agency fees mainly involve value-added tax and surtaxes. The value-added tax rate for general taxpayers is 6%, and the levy rate for small-scale taxpayers is 3% (it may be 1% during the epidemic period). Surtaxes are based on the amount of value-added tax, including urban maintenance and construction tax, education surcharge, and local education surcharge, and the calculation method is illustrated with examples.
Since our company has export business, we want to learn about the export agency's tax refund prepayment team. The best answer points out that this team specializes in serving export enterprises, is familiar with tax refund policies and regulations, can assist in sorting out materials, and the key is that it can prepay tax refunds, relieve the financial pressure of enterprises, can also accurately declare tax refunds, reduce tax risks, and ensure that enterprises can enjoy preferential policies in compliance.
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Professional consultant answers
Andrew HuangYears of service：7Customer Rating：5.0
Supply chain optimization expertConsult
In export agency business, the tax-bearing party is generally determined by the agency agreement. Typically, the principal is the actual exporter and stakeholder of the goods, so most taxes, such as VAT and customs duties, are borne by the principal. The principal engages in goods export trade and enjoys the profits from exports, so they should bear the corresponding taxes.
However, under certain special agreements, the agent may bear part of the taxes. For example, the agent’s service fee may involve VAT, which is borne by the agent. But taxes directly related to goods export, such as customs duties, are still likely the responsibility of the principal.
If the agreement is unclear, both parties need to negotiate to avoid future disputes over tax liabilities. In summary, tax responsibility in export agency depends on the agreement and should be judged based on actual business circumstances.
Joseph ZhouYears of service：10Customer Rating：5.0
Senior foreign trade managerConsult
Usually, the principal bears the major taxes since the goods belong to them, and the profits also go to them. The agent only provides services and generally does not bear taxes directly related to the goods.
Jennifer WangYears of service：4Customer Rating：5.0
Market development consultantConsult
It depends on the negotiation between the two parties. If the agent wants to secure the business, they might agree to bear some minor taxes, like stamp duty, but the bulk is still on the principal.
Robert ChenYears of service：6Customer Rating：5.0
Customer service consultantConsult
There’s no absolute rule for tax responsibility in export agency. It’s common for the principal to bear the major taxes, while the agent handles taxes arising from their own business, such as VAT from services.
David LiYears of service：6Customer Rating：5.0
Senior customs declaration consultantConsult
Generally, the principal bears taxes related to goods export, while the agent only handles taxes from their own services, like VAT on service income.
Amanda YangYears of service：3Customer Rating：5.0
Cost control consultantConsult
In most cases, the principal bears the taxes since they own the goods. But if the agent’s service includes tax-bearing clauses, then it follows the agreement.
Michelle ChenYears of service：3Customer Rating：5.0
Business coordination consultantConsult
Mainly, the principal bears export-related taxes, such as customs duties, while the agent is responsible for taxes on their own service fees.
Sarah ZhangYears of service：8Customer Rating：5.0
Document expertConsult
It boils down to the contract terms. If the contract is unclear, both parties need to discuss. Generally, the principal bears export taxes, and the agent handles their own service taxes.
James LiuYears of service：10Customer Rating：5.0
Foreign trade tax refund consultantConsult
The principal is likely to bear taxes on exported goods, while the agent is only responsible for taxes on their own service income, which they report and pay as required.
Elizabeth LiYears of service：3Customer Rating：5.0
Compliance and risk managerConsult
Usually, the principal bears export-related taxes, and the agent handles taxes from their own services. The specifics should follow the agreement signed by both parties.