How is VAT deducted in agency import business? I'm totally confused!

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Our company recently engaged in agency import business, but we are not very clear about the related VAT deduction issues. For example, should the consignor or the agent deduct it? How to operate it compliantly? What documents are needed? We hope that knowledgeable friends can explain in detail, thank you!
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Linda Guo
Linda GuoYears of service：3Customer Rating：5.0

Trade Dispute MediatorStart a Chat

In agency import business, VAT deduction is as follows:

Under normal circumstances, VAT is deducted by the consignor. The agent only provides agency services and collects agency fees. The actual consumer and user of imported goods is generally the consignor, so the consignor has the right to use the customs import VAT special payment notice to deduct input tax.

In terms of specific operational procedures, the consignor needs to obtain the customs import VAT special payment notice transferred from the agent. The VAT amount indicated on the payment notice can be used as input tax and declared for deduction within the prescribed period. However, please note that the header of the payment notice must be the consignor's company name and other accurate relevant information.

The documents generally required include the agency import agreement, which proves the relationship between the two parties; the original customs import VAT special payment notice, which is the key voucher for deduction; and supporting documents such as purchase contracts and invoices related to the import business to prove the authenticity of the business.

References: Unveiling the Secrets of Obtaining Import and Export Rights – Don’t Miss Out, Companies!
David Chen
David ChenYears of service：10Customer Rating：5.0

Trade Compliance AdvisorStart a Chat

Generally, the consignor deducts VAT. The key is to obtain the customs import VAT special payment notice, which contains the tax amount that can be used for deduction.

Sophia Wang
Sophia WangYears of service：6Customer Rating：5.0

International Logistics CoordinatorStart a Chat

The consignor deducts according to the regulations using the customs import VAT special payment notice. For documentation, prepare all materials that can prove the business, such as the agency import agreement.

Daniel Kim
Daniel KimYears of service：4Customer Rating：5.0

Commodity Inspection and Quarantine ConsultantStart a Chat

VAT is deducted by the consignor. Remember to ensure that the information on the customs import VAT special payment notice is accurate and complete, otherwise it may affect the deduction.

Olivia Liu
Olivia LiuYears of service：6Customer Rating：5.0

Foreign Exchange Risk ManagerStart a Chat

The VAT deduction for agency imports is mainly the responsibility of the consignor. Prepare the relevant contracts, payment notices, and other documents, and follow the normal declaration process.

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