A company plans to use an agent to export goods and inquires whether taxes are payable for agency exports, the types of taxes involved, and if there are any differences in tax payments compared to direct exports by general enterprises. The best answer states that tax payment for agency exports depends on the situation. For value-added tax (VAT), it is handled differently for tax-exempt or tax-refunded goods. Consumption tax is handled by the principal for tax refunds. The tax situation is determined by the nature of the goods and the type of principal, and differs from direct exports by general enterprises.
Who Should Declare for Agency Exports? Help Me Resolve This Doubt!
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Our company recently has an agency export business, and we previously handled all self-operated exports. We are not very familiar with the declaration process for agency exports. I'd like to ask everyone, who should declare for agency exports? Is it the principal or the agent? Are there any key points to pay attention to during the declaration process? I hope experienced friends can explain in detail. Thank you!
Trade Expert Insights Answers
Robert TanYears of service：5Customer Rating：5.0
International Market Development AdvisorStart a Chat
In agency export business, it is generally the principal who declares for export tax refund (exemption). This is because the principal is the actual owner of the goods and bears the profit and loss from the export sales. Therefore, it is more reasonable for the principal to declare for export tax refund (exemption).
However, the agent must apply to the competent tax authority for a certificate for goods exported under agency within 60 days from the date of customs declaration for export, and promptly transfer it to the principal.
When declaring, the principal needs to prepare a series of relevant documents such as the certificate for goods exported under agency, the customs declaration form for export goods, and the export invoice. The declaration should be made according to the prescribed declaration period and procedures. If the declaration is overdue, it may affect the processing of tax refunds (exemptions). At the same time, it is important to ensure that the declaration information is true and accurate to avoid tax risks.
Sophia WangYears of service：6Customer Rating：5.0
International Logistics CoordinatorStart a Chat
Usually, the principal declares because the ownership of the goods belongs to the principal, and the tax refund rights involved also belong to the principal. The agent can help collect and organize some basic materials for the principal.
Kevin HuangYears of service：3Customer Rating：5.0
E-Commerce Export AdvisorStart a Chat
Most of the time, the principal declares. However, both parties can clearly agree in the agency agreement in advance. If it is agreed that the agent declares, then the agent must be familiar with the entire declaration process and policies.
Anthony LuoYears of service：10Customer Rating：5.0
Trade Compliance ExpertStart a Chat
Generally, the principal declares. When declaring, pay attention to having complete documents. For example, the information on the customs declaration form should be consistent with other documents, otherwise, the declaration may fail.
Michael ZhangYears of service：10Customer Rating：5.0
Customs Clearance SpecialistStart a Chat
It is definitely the principal who declares, as it involves core interests such as tax refunds. Pay attention to the time nodes during declaration and do not miss the tax refund application deadline.
Emma ZhaoYears of service：3Customer Rating：5.0
Export Documentation SpecialistStart a Chat
In most cases, the principal declares for export tax refunds. However, if the agent is familiar with the process and has the consent of the principal, the agent can also declare, but the responsibilities must be clearly divided.
Olivia LiuYears of service：6Customer Rating：5.0
Foreign Exchange Risk ManagerStart a Chat
Generally, the principal declares. During the declaration process, carefully check all data, such as commodity codes and amounts, to ensure the accuracy of the declaration data.
Thomas LiYears of service：7Customer Rating：5.0
Import Licensing AdvisorStart a Chat
The principal declares. Note that different goods have different tax refund rates. Before declaring, be sure to confirm them to avoid calculating the wrong tax refund amount.
Linda GuoYears of service：3Customer Rating：5.0
Trade Dispute MediatorStart a Chat
Normally, the principal declares. The declaration documents should be properly kept for future verification by the tax authorities.
Richard WuYears of service：8Customer Rating：5.0
Global Trade Operations ExpertStart a Chat
Most of the time, the principal declares. Before declaring, both parties should communicate well to clarify matters such as document handover and ensure a smooth declaration.