Can VAT on Agency Imports Be Deducted?

The company plans to use an agent for import and export business and is unclear about the invoices to be issued by the agent, such as whether to issue VAT invoices like domestic trade, and whether there are differences in invoicing for imports, exports, and different trade methods. The best answer states that for imported goods from foreign suppliers, the agent issues a proforma invoice, and the customs issues a special VAT payment slip for imports, which can be used for input tax deduction. For agency fees, the agent issues invoices based on their status. For exports, the situations for manufacturing and foreign trade enterprises differ. Invoicing for agency fees for different trade methods is similar, but the invoices for the import and export of goods vary.

New to the agency import goods business, unclear about profit margin calculation methods, asking if it's the same as ordinary trade profit margin algorithms, and how agent fees, customs duties, and VAT are considered when calculating profit margins. The best answer points out that Profit = Agency Revenue - (Cost of Imported Goods + Various Expenses), and Profit Margin = Profit ÷ Agency Revenue × 100%, with an example illustrating that accurate accounting of all income and expenditures is necessary to calculate the true profit margin.

Doubts exist regarding VAT deduction in agency import business, including who deducts, how to operate, and what documents are required. The best answer points out that usually the consignor uses the customs import VAT special payment notice to deduct input tax, and attention should be paid to information such as the header of the payment notice. Additionally, supporting documents such as the agency import agreement, the original payment notice, and relevant purchase contracts are needed to prove the authenticity of the business.

The company commissioned Zhongmaoda to act as an agent for importing goods. The payer unit on the VAT special payment notice for imported goods is Zhongmaoda. The question is whether it can be deducted. The best answer points out that generally, for deduction, both the payer unit and the business unit must be the principal. If not, Zhongmaoda can be asked to issue a certificate for imported goods under agency, which cannot be deducted, and the principal can deduct based on the certificate and the tax payment voucher; or Zhongmaoda sells to the principal, issuing a special invoice for the principal to deduct.

Inquiring about the taxes such as customs duties and VAT involved in the trade volume of imported goods through Zhongmaoda agency. The best answer points out that if the agent simply acts on behalf of the principal to declare and pay taxes in the principal’s name, the taxpayer is the principal; if the agent imports in their own name, the agent is the taxpayer. It also suggests that both parties clarify tax payment terms in the contract to avoid disputes.

Want to understand if agency import incurs VAT, as well as how VAT is calculated and paid, and the differences in VAT between agency import and general import. The best answer states that agency import usually incurs VAT, collected by customs. The calculation formula is (customs dutiable value + customs duty + consumption tax) × VAT rate. The taxpayer depends on the agency model. In essence, there is no difference in VAT calculation and payment between agency import and general import.