A company plans to export products through an agency company and is confused about who pays taxes in agency exports, what tax types are involved, and the tax payment process. The best answer states that the principal generally pays taxes as they are the actual owner of the goods, and the taxes involved include VAT and customs duties. The VAT treatment differs for manufacturing enterprises and foreign trade enterprises. The principal needs to declare to the tax authorities and provide relevant documents for tax refunds or exemptions, while the agent assists in preparing the documents.
How to pay taxes and fees for transshipment trade, are there any knowledgeable friends?
Resolved
Our company plans to engage in transshipment trade business and has no prior experience in this area, so we are not very clear about which taxes and fees are involved in transshipment trade and how to pay them. We heard that the tax and fee situation for transshipment trade is quite complex, and it may vary depending on different regions and different commodities. Are there any friends who understand this area and can provide detailed information on the relevant knowledge of tax and fee payment for transshipment trade? Including generally involved tax types, approximate calculation methods, and payment procedures, thank you!
Trade Expert Insights Answers
Transshipment trade usually does not involve value-added tax and consumption tax. This is because the goods do not enter the national customs territory and are only transited at a third-party port. However, customs duties may be involved, depending on the customs duty policy of the transit country. For example, some free trade ports may exempt transit goods from customs duties.
In terms of calculation methods, if customs duties are involved, they are generally calculated based on the dutiable value of the goods multiplied by the applicable tax rate. The dutiable value may be the CIF (cost, insurance, and freight) price of the goods, etc., which specifically depends on the regulations of the customs in the transit country.
Regarding the payment process, it is generally handled by the freight forwarder or customs broker responsible for the transit operations. They will submit the relevant documents, such as bills of lading, commercial invoices, and packing lists, according to the requirements of the transit country's customs to handle customs declaration and tax payment procedures. In actual operations, it is essential to understand the customs policies and relevant regulations of the transit country in advance to avoid tax risks.
Although the goods in transshipment trade do not actually enter the home country, if it involves the signing of trade contracts, stamp duty may be involved. It is paid as a certain proportion of the contract amount, and the specific proportion depends on the type of contract. For sales contracts, it is generally three ten-thousandths.
In some regions, income tax may be levied on the service income related to transshipment trade. If the company has service income obtained through transshipment trade, it needs to declare and pay according to the local income tax policy. The general tax rate is 25%, and small and micro enterprises have preferential tax rates.
In transshipment trade, if it involves goods inspection and quarantine, corresponding fees may be incurred. The fee standards are determined by the inspection and quarantine items and the goods. For example, the inspection and quarantine fees for some special goods are relatively higher.
If transshipment trade involves warehousing services, warehousing fees and related taxes may be incurred in the warehousing stage, such as property tax. If the warehouse is self-owned, it needs to be paid at 1.2% of the remaining value of the property.
Some countries or regions may have corresponding taxes and fees for financial services charges in transshipment trade, such as bank handling fees. If foreign exchange transaction fees are involved, they may be taxed at a certain proportion.
If transshipment trade involves the use of intellectual property rights such as trademarks and patents, related taxes and fees may be involved, such as stamp duty on trademark license fees.
If transshipment trade goods undergo simple processing in the transit country, related taxes and fees for the processing stage may be involved, such as value-added processing parts may need to pay certain taxes and fees, depending on local policies.
Transshipment trade may incur different fees and taxes depending on the mode of transportation, such as sea transportation which may involve port construction fees, collected based on standards such as the weight or volume of the goods.
If in the process of transshipment trade, some special fees are generated due to cargo packaging, etc., in some areas, relevant taxes and fees may need to be paid, which specifically depends on local regulations.