Inquiring about whether import agency fees can be issued with a special VAT invoice after a company hires an agency for import business, the conditions required, and the impact on the company's tax deductions. The best answer points out that general VAT taxpayers acting as agents can issue special VAT invoices for taxable services. If the recipient is also a general VAT taxpayer, they can deduct input VAT if conditions are met, but it cannot be deducted for specific projects. When obtaining a special VAT invoice, ensure the information is accurate to reasonably reduce tax costs.
How is VAT deducted in agency import business? I'm totally confused!
Resolved
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!
Trade Expert Insights Answers
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.
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 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 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 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.