Do you know how to deduct for imported goods through an agent?

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Our company has imported a batch of goods through an agent and is now facing deduction issues, not quite understanding the specific procedures. We would like to ask everyone about the processes and precautions for deductions related to agency imports. What documents are needed? How is the deduction tax rate determined? We hope experienced friends can provide a detailed answer. Thank you very much!
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Kevin Huang
Kevin HuangYears of service:3Customer Rating:5.0

E-Commerce Export AdvisorStart a Chat

Deductions for agency imports mainly involve Value-Added Tax (VAT) deductions. Firstly, you need to obtain a legal and valid Customs Import Value-Added Tax Special Payment Voucher, which is usually obtained by the agent and then handed over to the principal. If the payment voucher has double headings (with both the agent's and the principal's names on it), the principal can directly use it for deduction.

Secondly, the company making the deduction must be a general VAT taxpayer, and the imported goods must be used for VAT taxable items. During the operation, select and confirm on the VAT Invoice Integrated Service Platform, enter the information from the Customs Import Value-Added Tax Special Payment Voucher into the system. After audit and verification, you can declare for deduction.

Regarding the determination of tax rates, it should be based on the specific category of imported goods, and deductions should be made according to the corresponding VAT tax rates, such as 13%, 9%, etc. You can refer to the Provisional Regulations of the People's Republic of China on Value-Added Tax and related regulations. In terms of document preparation, in addition to the Customs Import Value-Added Tax Special Payment Voucher, you also need to retain import contracts, customs declarations, and other documents related to the import business for tax authority inspection.

References: Unveiling the Black Box Operations of China-Hong Kong Import and Export Agents
Richard Wu
Richard WuYears of service:8Customer Rating:5.0

Global Trade Operations ExpertStart a Chat

Remember to pay attention to the deduction time limit. You must complete the selection and confirmation and declare for deduction within the prescribed period, otherwise, you may not be able to deduct.

Thomas Li
Thomas LiYears of service:7Customer Rating:5.0

Import Licensing AdvisorStart a Chat

If the payment voucher has a single heading, only the agent's name, then the agent may need to deduct and then issue an invoice to the principal, and the principal can deduct based on this invoice.

Michael Zhang
Michael ZhangYears of service:10Customer Rating:5.0

Customs Clearance SpecialistStart a Chat

The use of imported goods is crucial. If they are used for tax-exempt items, welfare for employees, etc., they cannot be deducted.

Olivia Liu
Olivia LiuYears of service:6Customer Rating:5.0

Foreign Exchange Risk ManagerStart a Chat

For the Customs Import Value-Added Tax Special Payment Voucher, ensure that the information is accurate and correct. Otherwise, if the audit and verification fail, you will not be able to deduct smoothly.

Anthony Luo
Anthony LuoYears of service:10Customer Rating:5.0

Trade Compliance ExpertStart a Chat

When entering the payment voucher information, be sure to check carefully to avoid entry errors that affect deductions.

Daniel Kim
Daniel KimYears of service:4Customer Rating:5.0

Commodity Inspection and Quarantine ConsultantStart a Chat

Before deducting, it is best to understand the specific requirements and procedures for agency import deductions of the local tax authority to avoid detours.

Emma Zhao
Emma ZhaoYears of service:3Customer Rating:5.0

Export Documentation SpecialistStart a Chat

In the agency import agreement, clarify the responsibilities and obligations related to deductions to avoid disputes later.

Linda Guo
Linda GuoYears of service:3Customer Rating:5.0

Trade Dispute MediatorStart a Chat

Properly keep all kinds of documents related to import business. If the tax authority requests an inspection, you can provide them in a timely manner.

User-submitted questions and answers reflect personal opinions, not the official stance of this website.

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