Doing foreign trade in Zibo, I want to understand the relevant situation of finding an export agency to handle tax refunds, and inquire about the general tax refund ratio and related calculation factors. The best answer states that the tax refund ratio varies by product type, such as 13% - 17% for mechanical and electrical products, 11% - 13% for textiles, etc. The calculation is related to the FOB price of export goods and the tax refund rate. It is important to choose a professional agency, and the enterprise itself must ensure business compliance.
Who Exactly Gets the Export Agency Tax Refund? Come and Find Out!
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Our company plans to engage an export agency to assist with export tax refund matters. We want to know who ultimately receives the export agency tax refund. Is it returned to us, the consignor, or to the export agency? Are there any regulations or special circumstances involved? We hope someone can explain in detail, so we have a clear understanding when choosing to cooperate with an export agency.
Trade Expert Insights Answers
Emma ZhaoYears of service：3Customer Rating：5.0
Export Documentation SpecialistStart a Chat
Export agency tax refunds are generally made to the consignor, which is your company. This is because the consignor is the actual exporter and seller of the goods, bearing the costs, risks, and benefits of the goods in the export transaction. According to relevant tax policies, the subject of the export tax refund should be the subject that actually bears the VAT burden, so the refund should be made to the consignor.
However, in practice, there may be two operational models. One is where the agency company handles the tax refund in the name of the consignor, and the tax refund is directly credited to the consignor's account. The other is where the agency company handles the tax refund in its own name, deducts agency fees, and then pays the remaining tax refund to the consignor. But regardless of the model, the ultimate tax refund benefit should essentially belong to the consignor. When choosing an export agency company, clarify the tax refund related clauses in the contract to protect your own rights and interests.
Sophia WangYears of service：6Customer Rating：5.0
International Logistics CoordinatorStart a Chat
Normally, it is refunded to the consignor. However, if the agency company and the consignor have special agreements in the contract, there may be other handling methods. As long as both parties have reached an agreement and it is within the legal and compliant framework, it is also a common practice to refund it to the agency company and then transfer it to the consignor.
Kevin HuangYears of service：3Customer Rating：5.0
E-Commerce Export AdvisorStart a Chat
It mainly depends on the agreement between the two parties. If the agency company advances taxes for the consignor, then it may be refunded to the agency company first. After the consignor settles the payment, the agency company will then transfer it. However, in this situation, the consignor should pay attention to risk control.
Anthony LuoYears of service：10Customer Rating：5.0
Trade Compliance ExpertStart a Chat
Generally speaking, export agency tax refunds are made to the consignor. If the agency company declares customs and applies for a tax refund in its own name, the tax refund will first go to the agency company's account, and then be given to the consignor according to the agreement.
Daniel KimYears of service：4Customer Rating：5.0
Commodity Inspection and Quarantine ConsultantStart a Chat
According to regulations, the recipient of export agency tax refunds is usually the consignor, as the consignor is the substantive party of the export business. However, to avoid disputes, both parties must clearly state the tax refund related matters in the contract before cooperating.
Linda GuoYears of service：3Customer Rating：5.0
Trade Dispute MediatorStart a Chat
In most cases, it is refunded to the consignor because the consignor is the actual bearer of the VAT for the exported goods. However, if the agency company has paid taxes on behalf of the consignor and there is a relevant agreement between the two parties, the tax refund may also go to the agency company first.
Olivia LiuYears of service：6Customer Rating：5.0
Foreign Exchange Risk ManagerStart a Chat
It is normally refunded to the consigning enterprise. However, if the agency company has made some special payments and investments during the operation, the two parties can negotiate and there may be different tax refund distribution methods.
Thomas LiYears of service：7Customer Rating：5.0
Import Licensing AdvisorStart a Chat
Export agency tax refunds are mostly refunded to the consignor. However, if the consignor and the agency company have a special cooperation model, such as the agency buying out the export, the ownership of the tax refund may be determined by the agreement between the two parties, and it may not necessarily be refunded to the consignor.
Robert TanYears of service：5Customer Rating：5.0
International Market Development AdvisorStart a Chat
Generally, it is refunded to the consignor, who has substantive economic dealings and tax relationships in the export business. If the agency company has paid certain taxes and fees on behalf of the consignor, the two parties can negotiate the distribution or payment order of the tax refund.