Our company plans to find a foreign trade export agent, but facing numerous options, we're unsure how to choose. We're concerned that an unreliable agent could negatively impact our business and are seeking advice on key aspects to focus on during selection. The best answer highlights that choosing a foreign trade export agent requires considering qualifications and experience, service quality, fee transparency, and reputation, using Zhongmaoda as an example to illustrate key points and help businesses select a suitable agent.
How to Pay Taxes for Foreign Trade Agency Export? Teach Me Quickly!
Resolved
Our company plans to find a foreign trade agent to export products and is not clear about the tax situation. We want to know what tax types are involved in exporting through a foreign trade agent, how tax obligations are divided, and whether they are borne by us as the entrusting party or the agent. What is the basis for calculation? We hope friends who understand related knowledge can explain it to me, the more detailed the better, thank you very much!
Trade Expert Insights Answers
Daniel KimYears of service：4Customer Rating：5.0
Commodity Inspection and Quarantine ConsultantStart a Chat
Tax payment for foreign trade agency export involves multiple situations. Generally speaking, regarding VAT, if the entrusting party is a production enterprise and adopts the "exempt, offset, and refund" tax method, the entrusting party declares export tax refund themselves. The agent only collects agency fees, and their agency fees are subject to VAT payment under "Modern Services - Business Auxiliary Services - Brokerage and Agency Services" at a tax rate of 6%. If the entrusting party is a foreign trade enterprise, for goods entrusted to a foreign trade enterprise for agency export, a "levy first, then refund" method is implemented. The entrusting party declares tax refund with relevant vouchers after the goods are exported.
Customs duties are usually borne by the entrusting party, calculated based on the dutiable price of the goods and the applicable tax rate. For consumption tax, if the exported goods are subject to consumption tax, the entrusting party handles the consumption tax refund.
Michael ZhangYears of service：10Customer Rating：5.0
Customs Clearance SpecialistStart a Chat
In foreign trade agency export, the agent pays VAT on the agency fees received. Other taxes are basically unrelated to the agent; it is mainly the entrusting party who pays taxes and declares tax refunds as per normal export business.
David ChenYears of service：10Customer Rating：5.0
Trade Compliance AdvisorStart a Chat
If it is a general trade export agency, the entrusting party should pay attention to issuing accurate VAT invoices for export goods, as this affects the calculation of the tax refund amount. The agent is only responsible for paying taxes on agency fees according to regulations.
Richard WuYears of service：8Customer Rating：5.0
Global Trade Operations ExpertStart a Chat
For the entrusting party, it is necessary to distinguish whether they are a small-scale taxpayer or a general taxpayer, as the tax payment and refund rules are different. Small-scale taxpayers are exempt from tax on exports but do not receive tax refunds.
Robert TanYears of service：5Customer Rating：5.0
International Market Development AdvisorStart a Chat
Regarding customs duties on exported goods, it generally depends on the trade terms. For example, under FOB terms, the entrusting party usually bears the customs duties, calculated based on the dutiable price assessed by the customs.
Linda GuoYears of service：3Customer Rating：5.0
Trade Dispute MediatorStart a Chat
If the agent is a general taxpayer, the VAT rate on agency fees is 6%. If the agent is a small-scale taxpayer, the collection rate is 3% (currently subject to preferential policies).
Sophia WangYears of service：6Customer Rating：5.0
International Logistics CoordinatorStart a Chat
When the entrusting party handles tax refunds, they must promptly collect documents such as export customs declarations and invoices, and declare according to the prescribed procedures. Otherwise, it may affect the progress of the tax refund.
Thomas LiYears of service：7Customer Rating：5.0
Import Licensing AdvisorStart a Chat
Regarding consumption tax, if taxable consumer goods collected after entrusted processing are exported, the entrusting party applies for tax refund according to regulations, which differs from the VAT refund process.
Olivia LiuYears of service：6Customer Rating：5.0
Foreign Exchange Risk ManagerStart a Chat
In terms of tax declaration time, both the entrusting party and the agent must declare on time according to the tax regulations to avoid penalties for overdue declarations.