A company involved in re-export trade business inquired whether re-export trade requires stamp duty, the basis for calculating the payable amount, and practical operational considerations. The best answer indicates that re-export trade requires stamp duty, calculated based on the amount stated in the contract and the prescribed tax rate, such as purchase and sales contracts being stamped at 0.03%. Practical operations require accurate determination of contract nature, timely declaration, and so on.
How to Pay Taxes for Agency Exports? Please Help Me Answer!
Resolved
Our company plans to use an agency company for export business, but we are not very clear about how to pay taxes for agency exports. We heard that the tax types and calculation methods involved are quite complex, and we would like to ask everyone what we need to pay attention to regarding tax payment for agency exports. What specific taxes need to be paid, and what is the tax calculation basis? We hope experienced friends can explain in detail, so I can have a clear understanding.
Trade Expert Insights Answers
Robert TanYears of service：5Customer Rating：5.0
International Market Development AdvisorStart a Chat
Tax payment for agency exports needs to be considered from different entities. For the principal, if it is a manufacturing enterprise entrusting an agent to export self-produced goods, the "exemption, offsetting, and refund" tax method is generally implemented. "Exemption" refers to exemption from value-added tax at the export stage; "offsetting" refers to the input tax that should be refunded for raw materials and other items used in the export of self-produced goods, which is offset against the payable tax for domestic sales; "refund" refers to the portion of input tax that cannot be offset when the input tax of self-produced goods exported by the manufacturing enterprise in the current month is greater than the payable tax, which is refunded. If it is a foreign trade enterprise entrusting an agent to export, it is generally tax exemption and refund, meaning that export goods are exempted from value-added tax, and the value-added tax already paid when purchasing goods is refunded.
For the agent, it mainly involves value-added tax on agency service income, which is generally paid according to modern services, with a tax rate usually at 6%. The tax calculation basis is the total price and extra-price expenses obtained from agency services.
Richard WuYears of service：8Customer Rating：5.0
Global Trade Operations ExpertStart a Chat
The customs duties involved in agency exports depend on the specific goods being exported. Some goods are exempted from customs duties when exported, while others need to be paid according to regulations. Generally, when goods are declared for export, the customs will determine whether customs duties are levied and the tax rate based on the classification of the goods.
Linda GuoYears of service：3Customer Rating：5.0
Trade Dispute MediatorStart a Chat
It should be noted that if the principal is a small-scale taxpayer entrusting an agent for export, export goods are exempted from value-added tax and consumption tax, and their input tax is not deductible or refundable. Therefore, it is important to first determine the taxpayer type of the principal.
Kevin HuangYears of service：3Customer Rating：5.0
E-Commerce Export AdvisorStart a Chat
When calculating the refundable tax amount for agency exports, for foreign trade enterprises, the refundable tax amount = the amount indicated on the VAT special invoice × the export goods tax refund rate. This refund rate needs to be queried according to the regulations for different goods in the tax refund rate table.
Emma ZhaoYears of service：3Customer Rating：5.0
Export Documentation SpecialistStart a Chat
If the principal is a manufacturing enterprise, when declaring for "exemption, offsetting, and refund" tax, it must be declared within the prescribed declaration period, generally after the goods are declared for export and sales are recorded in the accounts. Delayed declaration may affect the tax refund.
Michael ZhangYears of service：10Customer Rating：5.0
Customs Clearance SpecialistStart a Chat
After the agent obtains agency income, in addition to value-added tax, surtaxes may also be involved, such as urban maintenance and construction tax, education surcharge, etc., which are calculated based on the value-added tax paid.
Thomas LiYears of service：7Customer Rating：5.0
Import Licensing AdvisorStart a Chat
If the exported goods are taxable consumer goods subject to consumption tax, for manufacturing enterprises with export rights entrusting agents to export their self-produced taxable consumer goods, consumption tax is exempted based on the actual export quantity, and no consumption tax refund will be processed.
David ChenYears of service：10Customer Rating：5.0
Trade Compliance AdvisorStart a Chat
During the tax payment process, related documents and information should be properly kept, such as export customs clearance forms, agency export agreements, etc., to be prepared for tax authorities' verification.
Olivia LiuYears of service：6Customer Rating：5.0
Foreign Exchange Risk ManagerStart a Chat
In agency export business, if the principal has bonded processing business, when calculating the "exemption, offsetting, and refund" tax, the calculation adjustments related to bonded processing must also be considered, which is relatively more complex.