Planning to find an agency company to import goods, and want to know what taxes are involved in agency import and the differences in tax payment for different goods. The best answer points out that agency import generally involves customs duties, with the tax rate determined by the HS code and country of origin, calculated as dutiable price × customs duty rate; value-added tax is mostly 13%, calculated as (dutiable price + customs duty) × tax rate; specific goods require consumption tax, with various calculation methods. Different goods have different tax payments due to different HS codes.
What taxes are generally involved in importing goods through an agent?
Resolved
I plan to find an agency company to import a batch of goods, but I am not clear about the taxes involved. I would like to ask everyone, what taxes are involved in importing goods through an agent? How are the tax rates for these taxes generally determined? I hope friends who understand this knowledge can explain it to me. Thank you in advance!
Trade Expert Insights Answers
Importing goods through an agent typically involves customs duty and value-added tax (VAT). Some goods may also be subject to consumption tax.
Customs duty is a tax levied on imported goods. Its tax rate is determined by the HS code of the goods. Different goods have different tax rates, generally ranging from 0% to 20%. For example, some equipment that countries encourage importing may have a 0% customs duty.
VAT generally has tax rates of 13%, 9%, etc. The calculation formula is (taxable price of customs duty + customs duty amount + consumption tax amount) × VAT rate. Most imported goods are subject to VAT.
Consumption tax is levied on specific consumer goods such as tobacco, alcohol, and cosmetics. The tax rates vary from 3% to 56%. The calculation methods include ad valorem, ad valorem by quantity, and composite taxation. The specific tax types and rates are determined by the actual situation of the imported goods.
The common taxes for imported goods are customs duty and VAT. Customs duty has different tax rates based on the type of goods, and VAT is generally 13%. However, be aware that specific industries or products may have preferential tax rates.
In addition to what has been mentioned, if high-end watches or precious jewelry are imported, there will be consumption tax. For watches priced over 10,000 yuan, the consumption tax rate is 20%.
Among the taxes for agent imports, customs duty and VAT are the main ones. The customs duty rate depends on the goods themselves, and VAT is generally 13%. For some agricultural products, etc., the import VAT may be 9%.
Consumption tax is levied on specific consumer goods. For imported solid wood flooring, the consumption tax rate is 5%. This is also a tax that needs to be considered during import.
Imported goods may also be subject to special duties such as anti-dumping duties, which are levied when imported products are found to be dumped.
Customs duty is calculated by multiplying the dutiable value of imported goods by the tax rate. VAT is calculated by multiplying the composite taxable price, which includes customs duty, by the tax rate. Understanding the calculation method is also very important.
If the imported goods are cross-border e-commerce retail goods, the tax policies are different, and there is a dedicated cross-border e-commerce comprehensive tax.
In specific circumstances, such as the import of educational and scientific materials, tax reduction or exemption policies may apply if conditions are met, so it is important to pay attention to the policies.
For goods subject to consumption tax, when calculating VAT, the composite taxable price must include the consumption tax amount. Ensure the calculation is correct.