A company is asking who the export tax refund is issued to when they use an agent company to export products: the principal or the agent. They also inquire about the relevant procedures and the risk of refunding to the wrong party. The best answer indicates that export tax refunds generally go to the principal, as the principal is the actual owner and seller of the goods. Both parties should clarify the refund recipient in their agreement and follow the prescribed procedures, ensuring timely communication and verification of information.
Who Owns Agency Export-Import Tax Refunds? Find Out Now!
Resolved
My company plans to find an agent to help with export-import business. Now there's a question we're not very clear about: who owns the agency export-import tax refunds? Is it the entrusting party, which is our company, or the agent? Are there any rules or influencing factors involved? We hope a professional can help answer this so we can be confident when looking for an agent to cooperate with and avoid disputes arising from this.
Trade Expert Insights Answers
Emma ZhaoYears of service：3Customer Rating：5.0
Export Documentation SpecialistStart a Chat
Agency export-import tax refunds generally belong to the entrusting party. In principle, export tax rebates are granted by the state to enhance the competitiveness of export commodities by refunding the VAT and consumption tax actually paid on export goods during their domestic production and circulation stages. The entrusting party is the actual producer or operator of the goods, bearing the domestic tax burden, so the tax refund should belong to the entrusting party.
In practice, the entrusting party and the agent will sign an agency agreement to clarify the ownership of the tax refund. If the agreement is not clear, it should also belong to the entrusting party according to relevant regulations and industry practices. However, the agent provides services during the tax refund process and will charge a certain agency fee; this part of the fee does not affect the ownership of the tax refund. In short, by signing a detailed and standardized agreement before cooperation, clarifying the rights and obligations of all parties, disputes regarding tax refund ownership can be effectively avoided.
David ChenYears of service：10Customer Rating：5.0
Trade Compliance AdvisorStart a Chat
Normally, it belongs to the entrusting party. After all, the goods belong to the entrusting party, and the related taxes are also borne by the entrusting party; the agent merely helps with the process.
Linda GuoYears of service：3Customer Rating：5.0
Trade Dispute MediatorStart a Chat
Generally, whoever bears the tax burden of the goods owns the tax refund, so it's highly likely to be the entrusting party. However, it depends on what both parties agree upon in the contract.
Daniel KimYears of service：4Customer Rating：5.0
Commodity Inspection and Quarantine ConsultantStart a Chat
Unless otherwise specifically agreed upon, as per usual practice, agency export-import tax refunds belong to the entrusting party, and the agent only assists with the handling.
Thomas LiYears of service：7Customer Rating：5.0
Import Licensing AdvisorStart a Chat
It should belong to the entrusting party. The agent's primary responsibility is to help handle export-import and tax refund procedures, and the right to the tax refund belongs to the entrusting party.
Richard WuYears of service：8Customer Rating：5.0
Global Trade Operations ExpertStart a Chat
Normally, it's the entrusting party. However, if the entrusting party and the agent have other provisions regarding tax refund ownership in their agreement, then it should follow the agreement.
Michael ZhangYears of service：10Customer Rating：5.0
Customs Clearance SpecialistStart a Chat
It's generally defaulted to the entrusting party, because the entrusting party is the owner of the goods and bears the tax burden; the agent only provides agency services.
Anthony LuoYears of service：10Customer Rating：5.0
Trade Compliance ExpertStart a Chat
Most of the time, it belongs to the entrusting party. However, to avoid disputes, the entrusting party and the agent must clearly state the issue of tax refund ownership in their cooperation agreement.
Robert TanYears of service：5Customer Rating：5.0
International Market Development AdvisorStart a Chat
From a general perspective, the owner of agency export-import tax refunds is the entrusting party, which is based on the principle of tax burden bearing.
Sophia WangYears of service：6Customer Rating：5.0
International Logistics CoordinatorStart a Chat
In principle, it belongs to the entrusting party. If the agreement between both parties specifies otherwise, then the agreement shall be followed; everything is subject to the agreement.