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Can the VAT on import freight forwarding fees be deducted?
Resolved
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 Expert Insights Answers
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.
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 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 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 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 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 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 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 GuoYears of service：3Customer Rating：5.0
Trade Dispute MediatorStart a Chat
Import freight forwarding fees corresponding to non-normal losses cannot be deducted.