A staff member of a foreign trade company is considering hiring a freight forwarder to handle exports due to high business volume and staff shortage, and is asking whether freight forwarders can act as export agents, what services they can provide, and what to pay attention to. Freight forwarders can act as export agents and can assist with booking space, arranging transportation, customs declaration, and inspection. When choosing, pay attention to their reputation and qualifications, clarify the details of fees, and maintain good communication.
Is it permissible to purchase input VAT invoices in agency export business?
Resolved
My company is engaged in agency export business and has recently encountered some doubts regarding tax matters. I would like to ask if it is permissible to purchase input VAT invoices in the case of agency export? We know that input VAT invoices are important for offsetting taxes, but we are also worried about the tax risks arising from improper operations. Therefore, we want to understand the relevant policies and regulations clearly: whether it is allowed, what the consequences will be if it is purchased, and if it is not allowed, how should input VAT invoices be handled correctly in agency export business?
Trade Expert Insights Answers
Olivia LiuYears of service：6Customer Rating：5.0
Foreign Exchange Risk ManagerStart a Chat
Purchasing input VAT invoices is not allowed in agency export business. Purchasing input VAT invoices is considered fraudulent invoicing and a serious violation of tax regulations. Falsifying special VAT invoices not only incurs penalties such as tax recovery, late payment surcharges, and fines, but in serious cases, the responsible persons may also face criminal charges.
In agency export business, it is the compliant way for the principal to issue input VAT invoices to the agent for export tax rebates and other operations. The agent assists the principal in handling tax rebates based on the agency agreement and relevant export documents. If the principal cannot provide legal and compliant input VAT invoices, the agent should not resolve it by purchasing them, but should negotiate with the principal to find out the reasons for the inability to provide them and resolve the issue. In summary, compliant handling of input VAT invoices is essential for the healthy development of agency export business and to avoid tax risks.
Richard WuYears of service：8Customer Rating：5.0
Global Trade Operations ExpertStart a Chat
Absolutely do not purchase them; buying input VAT invoices is digging a hole for yourself. Once discovered by the tax authorities, the company's reputation will be damaged, making future business operations troublesome, and it will be subject to key supervision.
David ChenYears of service：10Customer Rating：5.0
Trade Compliance AdvisorStart a Chat
The risk of purchasing input VAT invoices in agency export is too high. If the amount of fraudulent invoicing is huge, imprisonment is possible. Legitimate operation is the right path.
Daniel KimYears of service：4Customer Rating：5.0
Commodity Inspection and Quarantine ConsultantStart a Chat
It is not allowed. Tax supervision is very strict. Obtaining input VAT invoices through illegal channels is not worth the loss. It is best to operate strictly according to regulations.
Kevin HuangYears of service：3Customer Rating：5.0
E-Commerce Export AdvisorStart a Chat
Never do such a thing as buying input VAT invoices. Once exposed, the company's image and economy will suffer heavy blows.
Linda GuoYears of service：3Customer Rating：5.0
Trade Dispute MediatorStart a Chat
Purchasing input VAT invoices is definitely not acceptable; it's a red line, and crossing it is illegal. Obtaining input VAT invoices through legitimate means is the long-term solution.
Robert TanYears of service：5Customer Rating：5.0
International Market Development AdvisorStart a Chat
Agency export business should follow standard procedures. Purchasing input VAT invoices is absolutely not advisable; do not take risks for temporary gains.
Thomas LiYears of service：7Customer Rating：5.0
Import Licensing AdvisorStart a Chat
The risk of fraudulent input VAT invoices is extremely high and will bring incalculable losses to the enterprise. Do not harbor any in this regard.
Emma ZhaoYears of service：3Customer Rating：5.0
Export Documentation SpecialistStart a Chat
In the long run, purchasing input VAT invoices is detrimental to the enterprise in every way. Handling input VAT invoices according to policy regulations is the correct choice.