Can the VAT on import freight forwarding fees be deducted?

Resolved
  • 匿名
  • 225
  • 9 Answers
NO.20260127*****

[Challenge] *****, [Solution] *****, [Process & Cost] *****

Access Full Plan
Our company has import operations and has engaged a freight forwarder to assist with related matters. Now, regarding the VAT deduction for these fees, we are unsure whether import freight forwarding fees can be deducted. We would like to ask under what circumstances import freight forwarding fees can be deducted, and under what circumstances they cannot? We hope for a detailed explanation, thank you!
Trade Experts Q&A
Trade Experts Q&A

Consult with Our Trade Experts

Quick, reliable advice for all your trade needs, from sourcing to shipping.

Trade Expert Insights Answers

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

Export Documentation SpecialistStart a Chat

Whether the VAT on import freight forwarding fees can be deducted depends on the specific circumstances. If your company is a general VAT taxpayer and obtains a special VAT invoice for import freight forwarding fees, and these fees are related to the company's production and business operations and used for VAT taxable items, then they can usually be deducted. For example, if the services are for import cargo transportation agency, helping goods clear customs smoothly and used in subsequent production, sales, or other operational stages.

However, if a special VAT invoice is not obtained, such as a regular invoice, the input tax cannot be deducted. Furthermore, if these fees are used for collective welfare, personal consumption, tax-exempt items, etc., they cannot be deducted. For instance, if the goods handled by the import freight forwarding service are for employee welfare distribution rather than production and operations, the corresponding fees cannot be deducted. Therefore, the key is to determine the nature of the business and the type of invoice.

References: Re-export Air Freight: "Logistics Hackers" Under Tariff Barriers
Sophia Wang
Sophia WangYears of service：6Customer Rating：5.0

International Logistics CoordinatorStart a Chat

Generally, as long as it's a genuine business transaction, with a compliant special invoice, and not used for non-deductible items, it can usually be deducted.

Robert Tan
Robert TanYears of service：5Customer Rating：5.0

International Market Development AdvisorStart a Chat

If imported goods are used for simplified tax calculation projects, the related freight forwarding fees cannot be deducted.

Kevin Huang
Kevin HuangYears of service：3Customer Rating：5.0

E-Commerce Export AdvisorStart a Chat

It depends on whether a legal and valid deduction voucher has been obtained; if not, it certainly cannot be deducted.

Richard Wu
Richard WuYears of service：8Customer Rating：5.0

Global Trade Operations ExpertStart a Chat

If the company is a small-scale VAT taxpayer, import freight forwarding fees cannot be deducted, because small-scale VAT taxpayers use simplified tax calculation methods.

David Chen
David ChenYears of service：10Customer Rating：5.0

Trade Compliance AdvisorStart a Chat

Import freight forwarding fees incurred for VAT-exempt projects cannot be deducted.

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

Import Licensing AdvisorStart a Chat

If the business involved in import freight forwarding services does not fall within the prescribed scope for deduction, it cannot be deducted.

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

Commodity Inspection and Quarantine ConsultantStart a Chat

Besides the invoice, it is also necessary to check if relevant documents such as contracts are complete and compliant, otherwise, it might also affect the deduction.

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

Trade Dispute MediatorStart a Chat

Import freight forwarding fees corresponding to non-normal losses cannot be deducted.

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

You May Also Like

How to accurately calculate the profit margin for agency import goods?

New to the agency import goods business, unclear about profit margin calculation methods, asking if it's the same as ordinary trade profit margin algorithms, and how agent fees, customs duties, and VAT are considered when calculating profit margins. The best answer points out that Profit = Agency Revenue - (Cost of Imported Goods + Various Expenses), and Profit Margin = Profit ÷ Agency Revenue × 100%, with an example illustrating that accurate accounting of all income and expenditures is necessary to calculate the true profit margin.

How is VAT deducted in agency import business? I'm totally confused!

Doubts exist regarding VAT deduction in agency import business, including who deducts, how to operate, and what documents are required. The best answer points out that usually the consignor uses the customs import VAT special payment notice to deduct input tax, and attention should be paid to information such as the header of the payment notice. Additionally, supporting documents such as the agency import agreement, the original payment notice, and relevant purchase contracts are needed to prove the authenticity of the business.

Can import agency fees be issued with a special VAT invoice? Can someone help me answer this!

Inquiring about whether import agency fees can be issued with a special VAT invoice after a company hires an agency for import business, the conditions required, and the impact on the company's tax deductions. The best answer points out that general VAT taxpayers acting as agents can issue special VAT invoices for taxable services. If the recipient is also a general VAT taxpayer, they can deduct input VAT if conditions are met, but it cannot be deducted for specific projects. When obtaining a special VAT invoice, ensure the information is accurate to reasonably reduce tax costs.

Looking to become an agent for imported new home renovation, what brands are worth considering?

Planning to engage in the business of importing new home renovation agents, I want to know which brands have a good reputation, high product quality, and a comprehensive service system. The best answer recommended "Zhongmaoda", which has deep accumulation in imported home decoration materials and overall renovation solutions. Its products have diverse styles, guaranteed quality, and also provide comprehensive support for agents. In addition, it is also mentioned that brands focusing on a certain type of imported product can be considered based on one’s own positioning.

How is the tax prepayment by import agents calculated? Please teach me!

When a company uses an import agent for importing goods, they inquire about how the tax prepayment by the import agent is calculated. They ask if it’s solely based on import tariffs and VAT, or if there are other calculation methods and additional fees. The best answer states that it mainly involves import tariffs and VAT, calculated based on the dutiable value and corresponding tax rates, and may also involve consumption tax. Some agents may charge a handling fee for prepaid funds, which needs to be confirmed by contract.

Can input tax be deducted for commissioned agency imports?

The company commissioned Zhongmaoda to act as an agent for importing goods. The payer unit on the VAT special payment notice for imported goods is Zhongmaoda. The question is whether it can be deducted. The best answer points out that generally, for deduction, both the payer unit and the business unit must be the principal. If not, Zhongmaoda can be asked to issue a certificate for imported goods under agency, which cannot be deducted, and the principal can deduct based on the certificate and the tax payment voucher; or Zhongmaoda sells to the principal, issuing a special invoice for the principal to deduct.