Interested in weapon import and export, inquiring whether China has agencies for weapon exports, and if so, what are their processes, required conditions, and precautions. The best answer states that there are agents, such as Zhongmaoda. Agency organizations need qualifications, and the process includes evaluation, application, negotiation, etc. They must possess conditions like good reputation and capital, and pay attention to legality, compliance, and confidentiality.
Do Agency Exports Require Tax Payments? Learn More!
Resolved
Our company plans to find an agent to export products, and we want to know if tax payment is still required for agency exports. If tax is required, what tax types are involved? Is the agent responsible for payment or are we? We hope for a detailed answer so we can prepare in advance and avoid tax issues that could affect business operations later.
Trade Expert Insights Answers
Whether agency exports require tax payment depends on the specific circumstances. Generally, manufacturing enterprises entrusting foreign trade enterprises to act as agents for exporting self-produced goods implement the 'exemption, offset, and refund' management method, meaning that VAT at the export stage is exempt, the corresponding input VAT is offset against the payable tax of domestic sales, and any unoffset portion is refunded.
For foreign trade enterprises acting as agents for export, the consignor handles export tax refunds, while the agent is only responsible for providing agency services and collecting agency fees. VAT needs to be paid on this portion of agency fees, usually at a rate of 6%. Regarding other tax types, if the export involves consumption tax-taxable products, if they are subject to a specific tax based on quantity, the tax refund should be calculated based on the quantity of goods recovered by the consignor when processing the refund; if they are subject to an ad valorem tax based on price, it should be calculated based on the factory sales value of the exported goods. As for the taxpayer, the VAT on agency fees is paid by the agent, and tax refund-related operations are primarily handled by the consignor in accordance with prescribed procedures.
The specifics also need to be determined in detail based on the enterprise's actual business and local tax policies.
Agency exported products themselves, if eligible, can enjoy the export tax refund policy and are not subject to VAT at the export stage. However, the fees collected by the agent for providing agency services must be subject to VAT as per regulations.
If the agency exported goods fall within the scope of consumption tax-taxable items, and the consignor is a manufacturing enterprise, the consumption tax is generally paid by the consignor upon receiving the processed goods.
In agency export business, the nature of the consignor needs to be considered. If a small-scale VAT taxpayer entrusts an agent for export, the exported goods are exempt from tax but no tax refund is issued, so there is no issue of VAT payment at the export stage.
For the agent, in addition to VAT on agency fees, if an agency export contract is signed, stamp duty may also need to be paid as per regulations.
If the consignor is a foreign trade enterprise acting as agent for export, and the export meets the conditions for a tax refund, simply apply for the refund. Usually, no additional tax payment is required. However, attention must be paid to the collection of documents and the declaration deadline.
In agency exports, if relevant taxes and fees have already been paid on the goods during the domestic procurement stage, and the export meets the conditions for a tax refund, a refund can be applied for as per regulations; this is not a duplicate tax payment.
Tax policies for agency exports may vary in different regions, so it is recommended to consult the local tax authorities to ensure accurate compliance with tax regulations.
If agency export business involves special models such as cross-border e-commerce, the tax treatment will differ, and attention should be paid to relevant special policy provisions.