Shocking! These Secrets Are Hidden in the VAT of Import Agent Companies

In the current increasingly prosperous international trade, import agency business is becoming more and more active. For many enterprises and practitioners involved in import trade, the VAT issues related to import agent companies are like the key path in the fog. Clearly mastering it is crucial for the cost control and compliant operation of enterprises. Today, let's explore the mysteries of the VAT of import agent companies together.

In the import business process of import agent companies, VAT is an important part. Simply put, VAT is a type of turnover tax levied based on the value-added amount generated during the circulation of goods (including taxable labor services). When an import agent company is entrusted to import goods, the customs will levy import VAT on the imported goods. For an import agent company with the nature of a general taxpayer, under compliant circumstances, this part of the VAT can be deducted as input tax.

For example, the import agent company where Mr. Zhang works acts as an agent for an enterprise to import a batch of electronic products. The customs levies the corresponding import VAT according to the dutiable value of the goods and the specified tax rate. If Mr. Zhang's company is a general taxpayer and has obtained a legal and valid special payment receipt for customs import VAT, then this part of the VAT can be used to offset the output tax generated by the company in the domestic sales link.

The tax base of the VAT of import agent companies is usually the dutiable value of the imported goods plus the customs duty amount. The dutiable value is the price determined by the customs according to relevant regulations, which includes the price of the goods, the transportation and related expenses before the goods are unloaded at the place of entry within the territory of China, and insurance premiums, etc.

In terms of tax rates, the VAT rates vary according to the types of imported goods. Currently, the main VAT rates in China are 13%, 9%, etc. For example, if ordinary goods are imported, a 13% tax rate applies; if goods with a low tax rate such as agricultural products are imported, the tax rate may be 9%. The import agent company where Ms. Li works needs to calculate the import VAT at a 9% tax rate when acting as an agent for importing fruits.

For import agent companies, to achieve compliant VAT deduction, they need to follow a strict declaration process. First, they need to obtain a legal and valid special payment receipt for customs import VAT. When declaring for deduction, they need to check and confirm through the comprehensive service platform for VAT invoices. Only the special payment receipts for customs import VAT that have been correctly checked and confirmed can be declared for deduction within the specified time limit.

For example, after receiving the special payment receipt for import VAT issued by the customs, Zhongshitong Import Agent Company will promptly arrange its financial personnel to log in to the comprehensive service platform for VAT invoices to collect data and check and confirm. Then, within the tax declaration period, accurately fill in the VAT tax return, fill in the deductible input tax in the corresponding column, and complete the declaration and deduction.

Import agent companies not only deal with the VAT of imported goods but also the VAT related to the agency services they provide. Import agency services belong to modern service industries. General taxpayers are subject to a 6% VAT rate. For example, Zhongshitong Import Agent Company provides import agency services to customers, and the agency fees it charges need to calculate and pay VAT at a 6% tax rate. Small-scale taxpayers are subject to a 3% levy rate (there are relevant preferential policies during the epidemic).

The VAT of import agent companies may seem complex, but as long as you grasp the key points such as the tax base, tax rate, deduction and declaration, and the VAT treatment of agency services, you can ensure compliant operation and reasonably reduce tax costs. I hope that all practitioners can conduct in - depth research. If you have any questions, you are also welcome to leave messages in the comment section for discussion, and jointly improve the understanding and application ability of the VAT of import agent companies.