Want to export goods abroad through a freight forwarding agent, but lack experience and ask for specific methods. The best answer states that the general process includes entrusting, booking, customs declaration, container loading and transportation, tracking, and destination port customs clearance and pickup. When entrusting, detailed cargo information must be provided, and accurate documents are required for customs declaration. At the same time, ensure that documents are accurate and complete, and special cargo should be declared in advance, to ensure smooth export.
Does Export Agency Consignment Require Payment of Value-Added Tax? Come and Find Out!
Resolved
Our company plans to export goods through an agency and would like to know if VAT is payable for goods exported through an agency. What are the specific regulations? If it is payable, is it paid by the agency company or by us, the principal? We hope for a detailed explanation as this is very important for our company's export business planning. Thank you to all knowledgeable individuals for your assistance.
Trade Expert Insights Answers
Whether VAT is payable for goods exported through an agency depends on the specific circumstances. Generally, if the principal is a manufacturing enterprise (including foreign-invested enterprises) with import and export rights, the "exempt, offset, and refund" tax policy is implemented. Exported goods by the principal are exempt from VAT, and the corresponding input tax is offset against the payable VAT (excluding VAT subject to immediate and subsequent refund policies). The remaining un-offset amount will be refunded.
If the principal is a manufacturing enterprise without import and export rights, after the goods are exported, the agency export enterprise should apply to its competent tax authority for a certificate of agency export goods. The principal will then use this certificate to declare and handle tax rebates with the competent tax authority. If the principal is a foreign trade enterprise, the VAT rebate amount for agency exported goods should be calculated based on the input amount and tax rebate rate indicated on the special VAT invoice for purchased import and export goods, and the principal will apply for the tax rebate. Therefore, whether VAT is payable hinges on the nature of the principal's enterprise and relevant policy regulations.
Generally speaking, if the relevant tax rebate policies are met and tax rebates are applied for according to regulations, VAT is usually not payable. The key is whether the tax rebate requirements can be met, such as complete documentation and genuine export transactions.
If the agency exported goods do not meet the tax rebate conditions, for example, if the exported goods are explicitly stipulated by the state as not eligible for tax exemption or refund, then it may be deemed as domestic sales and VAT will be payable.
For small-scale taxpayers entrusting agency export of goods, VAT is exempt, and their input tax is not deductible or refundable. This is different from general taxpayer enterprises.
The payment of VAT for agency exported goods also requires attention to the type of exported goods. Different goods have different tax rebate rates, and some goods are not eligible for tax rebates and require tax payment.
In actual operations, it is important to communicate with the tax authorities in a timely manner, understand the latest policies, and accurately determine the VAT payable situation for agency exported goods.
When the contract between the principal and the agent has relevant provisions, the responsibility for VAT payment shall be determined according to the contract, but it cannot violate tax regulations.
If cross-border e-commerce agency exports are involved, VAT payment has different policies, and it should be handled in conjunction with its characteristics and regulations.
Enterprises should keep good records of agency export-related vouchers, such as customs declaration forms and invoices, for tax inspection of VAT payment.