Who should deduct the agency import tax invoice? Come and help me solve the confusion!
Solved#Import agent#
Our company has entrusted Zhongshitong to act as an agent for importing a batch of goods. Now we have obtained the import tax invoice, but we are not clear about who should make the deduction of this tax invoice. Is it our principal or the agent Zhongshitong? I heard that the relevant regulations are rather complicated and involve different situations. I hope someone can explain in detail how to determine the party that can deduct the agency import tax invoice, so as to avoid tax risks.
Professional consultant answers
Andrew HuangYears of service：7Customer Rating：5.0
Supply chain optimization expertConsult
The party that can deduct the agency import tax invoice needs to be judged according to the specific situation. If the imported goods are subject to import VAT in accordance with regulations, and the principal obtains a special VAT invoice issued by the agent, in this case, the principal can deduct the input tax amount based on the obtained special invoice.
If the agent imports goods in its own name, pays the import VAT and obtains the customs duty payment certificate, when the agent sells the goods to the principal, it needs to pay VAT according to regulations and issue an invoice to the principal. At this time, the agent deducts the input tax amount based on the customs duty payment certificate, and the principal deducts based on the invoice issued by the agent.
In simple terms, whoever actually bears the import - link VAT and obtains a legal and valid tax deduction certificate can make the deduction. In the case of your company, it is necessary to sort out the business process and the situation of obtaining relevant invoices to determine the deductible party.
James LiuYears of service：10Customer Rating：5.0
Foreign trade tax refund consultantConsult
Generally, it depends on the ownership of the imported goods. If the ownership of the goods belongs to the principal, the principal can make the deduction under certain conditions, such as obtaining a compliant invoice from the agent.
Joseph ZhouYears of service：10Customer Rating：5.0
Senior foreign trade managerConsult
It also depends on the contract agreement. If the handling method of the tax invoice is clearly specified in the contract, it shall be carried out in accordance with the contract. If there is no agreement, then judge according to the general tax regulations.
Elizabeth LiYears of service：3Customer Rating：5.0
Compliance and risk managerConsult
If the agent only collects and pays the tax and does not treat it as a sale, then it should be the principal who makes the deduction. The key is to look at the capital flow and invoice flow.
David LiYears of service：6Customer Rating：5.0
Senior customs declaration consultantConsult
If the taxpayer on the import tax invoice is the principal, usually the principal can make the deduction, which also conforms to the principle of the direct tax - paying entity making the deduction.
Jennifer WangYears of service：4Customer Rating：5.0
Market development consultantConsult
If the agent is responsible for a series of matters such as import customs clearance and sells to the principal, then the agent may make the deduction first and then issue an invoice to the principal for a second deduction.
Amanda YangYears of service：3Customer Rating：5.0
Cost control consultantConsult
From the principle that tax substance prevails over form, whoever ultimately bears the tax burden makes the deduction. In actual operation, judge in combination with the contract, invoice, etc.
Sarah ZhangYears of service：8Customer Rating：5.0
Document expertConsult
When the principal obtains the original customs duty payment certificate transferred by the agent and the agency import agreement, etc., it may be eligible for deduction. Specifically, consult the local tax bureau.
Michelle ChenYears of service：3Customer Rating：5.0
Business coordination consultantConsult
If the agent declares the import in the name of the principal and the funds, etc. are all paid by the principal, then the principal is very likely to be able to deduct the tax invoice.