Having goods for import but unfamiliar with the process, the user seeks a reliable import agent and is unsure where to start. The best answer suggests finding a suitable import agent by checking qualifications, understanding experience and business scope, evaluating the service team, consulting reputation and reviews, and engaging in in-depth communication. Other answers also propose methods like friend recommendations, industry exhibitions, online searches, and commercial service platforms.
Does an import agent really need to pay taxes?
Resolved
I'm currently planning to engage an import agent to help import a shipment of goods. However, I'm unclear whether the import agent is required to pay taxes during this process. If so, what types of taxes are involved? Will these taxes be borne by the import agent directly, or will they be passed on to the client? I'd appreciate it if someone knowledgeable could provide clarification, giving me a clear understanding and helping to prevent any potential tax disputes down the line.
Trade Expert Insights Answers
Whether an import agent needs to pay taxes depends on the specific circumstances. Generally, if an import agent only provides agency services and charges an agency fee, they only need to pay VAT and related surcharges on the agency fee. The VAT rate is usually 6%, and surcharges are based on the VAT amount, including Urban Maintenance and Construction Tax (7% in urban areas, 5% in counties and towns, 1% in other areas), Education Surcharge 3%, and Local Education Surcharge 2%.
However, if the import agent imports goods in their own name and then resells them to the client, in this situation, in addition to the aforementioned taxes on the agency fee, they also need to pay import duties, import VAT, etc., just like a general importer. Import duty rates vary depending on the type of goods, and import VAT is generally 13% (some goods have special rates).
Regarding who bears the taxes and fees, if it's solely an agency service, the import agent bears the taxes and fees related to the agency fee; however, duties and VAT generated from the import of goods are often borne by the client in actual business, and this can be clearly stipulated in the agency contract.
If an import agent merely assists with import procedures and charges a service fee, then only the service fee portion is subject to tax, which is VAT. If it involves collecting and paying for goods without any markup for resale, generally no additional taxes are incurred.
It depends on how the contract is signed. If it's an agency contract, then VAT is paid on the agency fee. If it's a purchase and sales contract, meaning the agent imports the goods themselves and then sells them to you, then all import-related taxes must be paid by the agent.
When an import agent helps you import, you need to be clear: if the agent is merely an intermediary service provider, they only pay taxes on their service income. If they are fully responsible for the import, then they might have to pay the import taxes first and settle with you later.
If an import agent only provides services, VAT is certainly payable. If the agreement between the import agent and the client is unclear, tax handling might lead to disputes, so it's best to clearly state tax-related responsibilities in the contract beforehand.
If the import agent company is a small-scale VAT taxpayer, the VAT collection rate for agency fees is 3% (with preferential policies during the pandemic), which differs from the tax calculation method for general VAT taxpayers. This point should be noted.
If an import agent imports in their own name and then sells to the client, import consumption tax sometimes also needs to be paid, for consumer goods such as tobacco, alcohol, and cosmetics. Whether it needs to be paid specifically depends on whether the goods are subject to consumption tax.
Regarding import agents paying taxes, one also needs to pay attention to local tax policies, as some areas may have tax incentives or special administration requirements for import agent enterprises.
If the import agent company collects and advances import-related taxes and fees, they should settle with the client promptly, otherwise, cash flow pressure will be significant, and tax handling must also comply with regulations to avoid risks.
It is best for the import agent and the client to discuss tax matters thoroughly before cooperation, clearly defining who is responsible for which taxes, to avoid disputes over tax issues later.