Does agency export require taxation? Come and find out!

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I would like to know if agency export requires taxation. Our company plans to find an agent to help export a batch of goods, and we are not very clear about the tax policy in this regard. If it is taxed, is it taxed on the agent company or on us, the principal? Which taxes are levied specifically? We hope to get a professional answer so that we can make preparations in advance and avoid subsequent tax issues.
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Thomas Li
Thomas LiYears of service：7Customer Rating：5.0

Import Licensing AdvisorStart a Chat

Whether agency export is taxed needs to be discussed on a case-by-case basis. Generally, if the agency export of goods falls within the scope of value-added tax and consumption tax, and the principal is a manufacturing enterprise that meets the relevant policy regulations, a duty exemption and refund of tax system is implemented. This means that the value-added tax at the export stage is exempted, and the corresponding input tax is offset against the value-added tax payable on domestic sales. The remaining amount that is not offset will be refunded. If the principal is a foreign trade enterprise, a duty exemption and refund system is implemented, meaning that value-added tax is exempted on exported goods, and the input tax of purchased goods is refunded. In terms of consumption tax, if it is a taxable consumer good, consumption tax is exempted, and the consumption tax already levied in the previous stage is refunded. For the entrusted agent, its agency services belong to brokerage and agency services in modern services, and it needs to pay value-added tax according to regulations, with a general tax rate of 6%. Therefore, the objects of taxation vary depending on the tax type. The principal involves policies related to value-added tax and consumption tax for export of goods, while the agent pays value-added tax for agency services.

References: Hefei Import and Export Agency Fees: Are They Really That High?
Anthony Luo
Anthony LuoYears of service：10Customer Rating：5.0

Trade Compliance ExpertStart a Chat

Generally, the export of goods by the principal involves the handling of value-added tax and consumption tax. If it meets the export tax rebate policy, tax rebates can be enjoyed. The agent only pays value-added tax on agency services, calculated by multiplying the sales amount by the tax rate.

Emma Zhao
Emma ZhaoYears of service：3Customer Rating：5.0

Export Documentation SpecialistStart a Chat

For agency export, if the principal is a manufacturing enterprise, it follows the exemption, offset, and refund system. For foreign trade enterprises, it follows the exemption and refund system. The agent receives agency fees and pays value-added tax as a service industry.

Daniel Kim
Daniel KimYears of service：4Customer Rating：5.0

Commodity Inspection and Quarantine ConsultantStart a Chat

It depends on the nature of the goods and the type of the principal. For general trade goods exported, manufacturing enterprises follow the exemption, offset, and refund system, and foreign trade enterprises follow the exemption and refund system. The agent provides services and needs to pay value-added tax.

Olivia Liu
Olivia LiuYears of service：6Customer Rating：5.0

Foreign Exchange Risk ManagerStart a Chat

In agency export, the principal's export of goods is handled according to the export tax rebate policy, and the agent pays value-added tax on the sales of services provided.

Kevin Huang
Kevin HuangYears of service：3Customer Rating：5.0

E-Commerce Export AdvisorStart a Chat

If the principal exports goods and meets the conditions, tax rebates can be obtained. The agent receives agency fees and pays value-added tax according to regulations.

Linda Guo
Linda GuoYears of service：3Customer Rating：5.0

Trade Dispute MediatorStart a Chat

The tax exemption or collection situation for the principal's exported goods depends on the policy. The agent's agency services need to be taxed for value-added tax.

David Chen
David ChenYears of service：10Customer Rating：5.0

Trade Compliance AdvisorStart a Chat

In agency export, the principal follows the tax policy for export of goods, and the agent pays value-added tax for services.

Richard Wu
Richard WuYears of service：8Customer Rating：5.0

Global Trade Operations ExpertStart a Chat

In agency export, the principal's export of goods involves the handling of value-added tax and consumption tax, and the agent pays value-added tax on agency fees.

User-submitted questions and answers reflect personal opinions, not the official stance of this website.

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