A company engaged in import agency business inquires about the issuance of invoices for bank fees related to import agency bills, including who should issue the invoice, the content of the invoice, and the tax rate. The best answer states that if the bank fees are borne by the company, the bank generally issues the invoice, with the content typically being "bank handling fees," and the tax rate depends on the bank's taxpayer status; if borne by the principal, theoretically the bank should issue the invoice to the principal, or it can be settled through other means.
Exporting through an agency company, how should invoices be issued?
Resolved
Our company plans to export products through an agency company. We have always exported directly before and are not very clear about invoicing for agency exports. I would like to ask everyone, how should invoices be issued for agency company exports? Should our company issue it to the agency company, or should the agency company issue it to the foreign customer? Are there any special requirements for the content and format of the invoice? What issues need to be paid attention to? I hope experienced friends can help answer, thank you!
Trade Expert Insights Answers
Daniel KimYears of service：4Customer Rating：5.0
Commodity Inspection and Quarantine ConsultantStart a Chat
When exporting through an agency company, there are generally two common invoicing scenarios. If it is a buy-out agency export, meaning the agency company exports in its own name and bears the foreign exchange collection risk, the agency company will issue the export invoice to the foreign customer. The invoice content needs to include detailed information about the exported goods, such as the name, specifications, quantity, unit price, and total price of the goods. The format should comply with export customs declaration and foreign customer requirements, generally following commercial invoice specifications. If it is an agency service export, your company, as the principal, exports in its own name, and your company will issue the export invoice to the foreign customer. The agency company will then issue an invoice for agency fees to your company, and the invoice for agency fees will be issued according to domestic service industry invoice specifications. Regardless of the method, attention should be paid to ensuring that the invoice information is consistent with the customs declaration form, contract, etc., to ensure the smooth progress of foreign exchange collection, tax refund, and other processes.
At the same time, the amount on the export invoice should be accurately calculated to avoid subsequent problems due to discrepancies in amounts. In addition, it is crucial to stay informed about the special requirements for invoices in the destination country.
Thomas LiYears of service：7Customer Rating：5.0
Import Licensing AdvisorStart a Chat
Generally speaking, if the agency company merely provides agency services and your company is still the exporting entity, then you will issue invoices to foreign customers, and the agency company will issue invoices for agency fees to you. When issuing invoices, ensure all information is accurate and corresponds with the customs declaration form.
Kevin HuangYears of service：3Customer Rating：5.0
E-Commerce Export AdvisorStart a Chat
It depends on how the agency agreement is signed. If it is agreed that the agency company is responsible for the entire export process, then the agency company will issue the invoice to the foreign customer. Please ensure the invoice clearly displays key information such as the value and quantity of the goods.
Anthony LuoYears of service：10Customer Rating：5.0
Trade Compliance ExpertStart a Chat
If your company is entrusting agency export and retains the export rights yourself, you typically issue the export invoice to the foreign customer. Remember to fill out the invoice according to regulations and avoid errors, as this will affect tax refunds.
Emma ZhaoYears of service：3Customer Rating：5.0
Export Documentation SpecialistStart a Chat
First, determine the agency model. For buy-out agency, the agency company issues the invoice to the foreigner. For non-buy-out, the principal generally issues the invoice. For invoice format, you can refer to previous export invoices or consult your local tax authorities.
David ChenYears of service：10Customer Rating：5.0
Trade Compliance AdvisorStart a Chat
If the agency company purely handles services like foreign exchange collection, and you are the exporter, then you must issue the export invoice. When issuing, pay attention to details like stamps and signatures on the invoice.
Linda GuoYears of service：3Customer Rating：5.0
Trade Dispute MediatorStart a Chat
It mainly depends on the nature of the agency. For services like collecting foreign exchange, you issue invoices to the foreigner; if it's an agency buy-out export, the agency company issues the invoice. Pay attention to ensure the description of goods on the invoice matches the actual goods.
Olivia LiuYears of service：6Customer Rating：5.0
Foreign Exchange Risk ManagerStart a Chat
According to the agency agreement, if the agency company exports in its own name, the agency company will issue the invoice. The invoice content should be written according to the actual situation of the exported goods, and important information should not be omitted.
Robert TanYears of service：5Customer Rating：5.0
International Market Development AdvisorStart a Chat
If it is a regular agency service export, you will issue a commercial invoice to the foreign customer, and the agency company will issue a service fee invoice to you. When issuing invoices, do not forget to follow the prescribed procedures.