A company involved in re-export trade inquired whether a tax refund declaration is required and what the specific process is. The best answer states that re-export trade generally does not require a tax refund declaration because the goods are not produced or processed in the domestic country, do not substantially increase domestic value, and therefore do not meet the basic conditions for export tax refunds. Re-export trade involves buying and selling goods through a third country, with goods shipped directly from the producing country to the consuming country, without paying relevant taxes and fees in the domestic country. If there are any questions, local tax authorities can be consulted.
Who Handles Tax Refunds for Agency Export Goods? Get Your Doubts Cleared!
Resolved
Our company plans to export a batch of goods through an agency company, and we are currently a bit confused about the tax refund issue. We want to know whether the tax refund for agency export goods is handled by the consignor or the agent? Is the refund process complicated? What documents are needed? We hope to have professional assistance to explain in detail, so that we can be well-informed and avoid future problems.
Trade Expert Insights Answers
Daniel KimYears of service：4Customer Rating：5.0
Commodity Inspection and Quarantine ConsultantStart a Chat
Generally, the consignor handles tax refunds for agency export goods. This is because the consignor is the actual owner and seller of the goods, and in terms of financial and tax accounting, the rights and obligations related to the export sale of the goods belong to the consignor.
For the consignor to handle the tax refund, they must first obtain proof of agency export goods, which is applied for by the agent from its competent tax authority after the goods are exported and payment is received. Once the consignor has this proof, they can then submit it along with documents such as the customs declaration form for exported goods and a copy of the agency export agreement to their own competent tax authority to declare the tax refund.
The tax refund process is relatively complex, involving the collection, organization, and declaration of documents for the export segment. It requires strict adherence to the timelines and specifications set by the tax authorities to avoid affecting the refund progress.
Sophia WangYears of service：6Customer Rating：5.0
International Logistics CoordinatorStart a Chat
The tax refund for agency export goods mainly depends on the agency method. If it is a pure agency, the consignor gets the refund. If the agent buys the goods outright for export, then the agent gets the refund, but this situation of buying out for export is less common.
Linda GuoYears of service：3Customer Rating：5.0
Trade Dispute MediatorStart a Chat
Most tax refunds for agency export goods go to the consignor. The consignor should pay attention to collecting export-related documents in a timely manner, such as customs declarations and invoices, and declare the tax refund within the stipulated time, otherwise, it may not be possible to get a refund if overdue.
Thomas LiYears of service：7Customer Rating：5.0
Import Licensing AdvisorStart a Chat
If you entrust a company with import and export operating rights to act as an agent for export, it is basically the consignor who gets the tax refund. When preparing documents, in addition to regular documents, there may be additional requirements depending on the region, which you can consult with the local tax department.
Emma ZhaoYears of service：3Customer Rating：5.0
Export Documentation SpecialistStart a Chat
In principle, the consignor handles tax refunds for agency export goods. However, in practice, it is important to ensure that the agency agreement is clear, defining the responsibilities and obligations of both parties regarding tax refunds to avoid disputes.
Olivia LiuYears of service：6Customer Rating：5.0
Foreign Exchange Risk ManagerStart a Chat
The consignor definitely gets the tax refund. The consignor should pay attention to the export date, receipt of payment, etc., as these all affect the tax refund. Just do the corresponding work according to the tax requirements.
Kevin HuangYears of service：3Customer Rating：5.0
E-Commerce Export AdvisorStart a Chat
Typically, the consignor handles the tax refund. When processing, ensure that the export business is genuine and the documents are complete, otherwise, if the tax audit finds problems, the tax refund will be troublesome.
Robert TanYears of service：5Customer Rating：5.0
International Market Development AdvisorStart a Chat
For agency exports, it's basically the consignor who gets the tax refund. Before applying for the tax refund, the consignor should best verify all the data with the agent to prevent declaration errors.
Richard WuYears of service：8Customer Rating：5.0
Global Trade Operations ExpertStart a Chat
Tax refunds for agency export goods are mainly handled by the consignor. The consignor needs to actively cooperate with the agent and provide the required documents in a timely manner to jointly complete the tax refund work.