A company imported goods through an agent and does not know how to make deductions. They want to understand the relevant procedures, precautions, required documents, and deduction tax rates. The best answer suggests that a legal and valid Customs Import Value-Added Tax Special Payment Voucher is required. If the payment voucher has double headings, the principal can directly deduct it. General VAT taxpayers importing goods for taxable items need to select and confirm on the platform. After audit and verification, they can declare for deduction, applying the corresponding tax rate based on the item category. It is also important to retain relevant documents.
What taxes are levied on agency imports? Please help me answer!
Resolved
Our company plans to find an agent to import a batch of goods. We have no prior experience with agency imports and are unsure about the taxes involved. We've heard that customs duties and value-added tax are involved, but what exactly is the situation? We hope friends who know about this can explain it in detail so that we can have a clear understanding and make budget arrangements in advance.
Trade Expert Insights Answers
Olivia LiuYears of service：6Customer Rating：5.0
Foreign Exchange Risk ManagerStart a Chat
Agency imports generally involve the following taxes:
First is customs duty, calculated by multiplying the dutiable value by the customs duty rate. The dutiable value is usually the CIF price of the goods, which is the cost, insurance, and freight price. Different goods correspond to different customs duty rates. You can check the Customs Import and Export Tariff of the People's Republic of China for specific details.
Second is value-added tax (VAT), calculated using the formula: (dutiable value + customs duty) × VAT rate. The VAT rate for most imported goods is 13%, while some specific goods, such as agricultural products, are subject to a 9% rate.
In addition, if the imported goods are taxable consumer goods, such as tobacco, alcohol, or cosmetics, consumption tax must also be paid. Consumption tax has various calculation methods, including ad valorem, ad valorem with quota, and composite taxation. The actual tax paid will vary depending on factors such as the type of goods and origin. It is recommended to understand the relevant policies and regulations in detail before importing.
Kevin HuangYears of service：3Customer Rating：5.0
E-Commerce Export AdvisorStart a Chat
In addition to customs duty and VAT, if you import luxury goods, such as high-end watches, there may be consumption tax. The calculation of consumption tax depends on the specific product. For high-end watches, it is calculated by multiplying the selling price excluding VAT by a 20% tax rate.
Robert TanYears of service：5Customer Rating：5.0
International Market Development AdvisorStart a Chat
Agency imports may involve customs supervision and handling fees, but this usually applies to specific goods with tax exemptions or reductions. General goods rarely involve this. If the goods have wooden packaging, fumigation fees and related charges may be incurred, but these are not taxes.
Daniel KimYears of service：4Customer Rating：5.0
Commodity Inspection and Quarantine ConsultantStart a Chat
There may also be anti-dumping duties. If a product is found to be dumped, additional duties will be imposed. The amount of anti-dumping duty is the product of the dutiable value and the anti-dumping duty rate, with the rate determined by specific rulings.
Emma ZhaoYears of service：3Customer Rating：5.0
Export Documentation SpecialistStart a Chat
For goods subject to consumption tax in the import process, pay attention to the calculation of the composite taxable price for consumption tax. When calculated using the ad valorem method, the composite taxable price = (dutiable value + customs duty) ÷ (1 - consumption tax proportional rate).
Sophia WangYears of service：6Customer Rating：5.0
International Logistics CoordinatorStart a Chat
Some specific imported goods, such as certain educational and scientific items, may be eligible for preferential policies for customs duty and VAT reduction or exemption. It is important to confirm whether the goods meet the relevant tax reduction or exemption conditions before importing.
Anthony LuoYears of service：10Customer Rating：5.0
Trade Compliance ExpertStart a Chat
Pay attention to exchange rate issues. When calculating taxes such as customs duty and VAT, foreign currencies are converted to RMB using the central parity rate of RMB on the date the customs duty payment form is issued.
Thomas LiYears of service：7Customer Rating：5.0
Import Licensing AdvisorStart a Chat
If imported vehicles are for special purposes, vehicle purchase tax may be involved. The taxable price is the dutiable value plus customs duty and consumption tax.
David ChenYears of service：10Customer Rating：5.0
Trade Compliance AdvisorStart a Chat
If imported goods are returned due to quality or other reasons, the already levied customs duty, VAT, etc., can be refunded, provided that the relevant regulations and procedures are met.
Richard WuYears of service：8Customer Rating：5.0
Global Trade Operations ExpertStart a Chat
For cross-border e-commerce retail imports, the tax policies differ somewhat from general trade agency imports, with specific limits and tax calculation methods.