Want to know who owns export tax rebates in agency import and export business and avoid disputes. The best answer indicates that export tax rebates generally belong to the principal, based on the principal-agent relationship and policies. However, the parties can agree otherwise by contract. But agreeing that the tax rebate belongs to the agent carries risks. It is recommended to follow the normal attribution: the principal receives the tax rebate, and the agent receives the agency fee, to protect interests and comply with tax regulations.
Does export tax rebate actually belong to the agency company? Please help me clarify!
Resolved
Our company plans to find an agency company to help with export business, which involves export tax rebates. I'm not sure if this part of the export tax rebate belongs to the agency company or our own company? If it belongs to the agency company, under what circumstances? If it belongs to our company, how should we operate? I hope someone knowledgeable can explain it to me so that I can have a clear understanding, otherwise, I'm always afraid of being ripped off.
Trade Expert Insights Answers
Daniel KimYears of service：4Customer Rating：5.0
Commodity Inspection and Quarantine ConsultantStart a Chat
Export tax rebates do not necessarily belong to the agency company. Generally speaking, if your company has a pure agency relationship with the agency company, meaning the agency company only provides agency services and charges agency fees, and the export business is essentially your company's, then the export tax rebate belongs to your company. Your company needs to declare the tax rebate to the competent tax authority after the goods are exported and all required documents are collected. The process is roughly as follows: first, carry out export tax (exemption) tax filing, collect documents such as export customs declaration forms and invoices, input declaration data through the electronic tax bureau or export tax rebate declaration system, and obtain the tax rebate after the review is passed.
However, if the agency company buys out the goods for export, meaning the agency company purchases goods from your company and exports them in its own name, in this case, the export tax rebate belongs to the agency company, and the agency company will declare the tax rebate according to regulations. Therefore, the key depends on the cooperation model between your company and the agency company.
Richard WuYears of service：8Customer Rating：5.0
Global Trade Operations ExpertStart a Chat
The attribution of export tax rebates mainly depends on the contract agreement. If the contract clearly states that the tax rebate belongs to your company, then it belongs to your company, and you can declare it according to the normal procedures. If it is not clearly agreed upon, it is easy to have disputes, so it is important to pay attention to this aspect when signing the contract.
Kevin HuangYears of service：3Customer Rating：5.0
E-Commerce Export AdvisorStart a Chat
Look at the cash flow. If both the payment for goods and the tax rebate are settled directly with your company, then the tax rebate is very likely to belong to your company. If the agency company settles the payment for goods and handles tax rebate related matters in its own name, then the tax rebate may belong to the agency company.
Thomas LiYears of service：7Customer Rating：5.0
Import Licensing AdvisorStart a Chat
Generally, the agency company only helps to handle the tax rebate procedures, and the tax rebate still belongs to the principal company. However, some fees may be involved during the processing, which should be negotiated in advance to avoid disputes.
Sophia WangYears of service：6Customer Rating：5.0
International Logistics CoordinatorStart a Chat
If the agency company only helps you handle export procedures and tax rebate declaration matters, and does not involve buying out goods, then the tax rebate belongs to your company, and the agency company is only assisting in the operation.
Olivia LiuYears of service：6Customer Rating：5.0
Foreign Exchange Risk ManagerStart a Chat
To determine the attribution of the tax rebate, you also need to look at the operating unit and the shipping unit on the export customs declaration form. If both are your company, then the tax rebate usually belongs to your company.
Emma ZhaoYears of service：3Customer Rating：5.0
Export Documentation SpecialistStart a Chat
If the agency company provides tax prepayment services and gives you the tax rebate amount in advance, in this case, after the tax rebate is obtained, it will belong to the agency company, which is equivalent to a working capital cooperation.
Linda GuoYears of service：3Customer Rating：5.0
Trade Dispute MediatorStart a Chat
In fact, regardless of who it belongs to, tax rebates must be declared legally and compliantly. If it belongs to your company, prepare the required documents and declare according to the requirements; if it belongs to the agency company, you must also supervise its operations in accordance with regulations to avoid risks.
David ChenYears of service：10Customer Rating：5.0
Trade Compliance AdvisorStart a Chat
If you have an affiliated relationship, and export under the name of the agency company, the agency company may deduct relevant fees and then give the tax rebate to your company. This also depends on the negotiation between the two parties.
Michael ZhangYears of service：10Customer Rating：5.0
Customs Clearance SpecialistStart a Chat
In actual operations, some agency companies use tax rebates as a selling point to attract customers, promising quick receipt of tax rebates, etc. At this time, you should be cautious and not only look at the attribution of the tax rebate but also at whether the operation is standardized.