Want to know what kind of taxation transit trade falls under? Transit trade typically does not involve traditional import or export duties, and generally does not involve VAT and consumption tax domestically because the goods do not enter the domestic consumption market. From a tariff perspective, goods not actually entering the national customs territory typically do not require payment of import duties. However, policies vary by region, and stamp duty may be involved, and businesses also need to pay attention to corporate income tax, etc.
How Exactly Should Agency Imported Goods Be Taxed? Come and Offer Advice!
Resolved
Our company plans to import a batch of goods through an agent. We haven't dealt with agency imports before and are quite unclear on how agency imported goods should be taxed. Should the consignor or the agent pay the taxes? What are the specific taxation procedures and how are tax rates determined? We hope experienced friends or professionals can explain it to us, so we have a clear understanding and can avoid problems during the import process.
Trade Expert Insights Answers
The taxation of agency imported goods needs to be considered on a case-by-case basis. Generally, if the agent acts in the name of the consignor, is entrusted by the consignor to handle import-related matters, and also meets certain conditions, such as the consignor signing the import contract and bearing payment responsibilities, then the consignor pays taxes as the taxpayer. Customs will determine the tax rate based on the goods' classification and the corresponding tariff code. Procedurally, during import declaration, the price, quantity, and other information of the goods are truthfully declared to customs, and customs will assess and levy taxes after review. If the agent imports goods in their own name, regardless of whether they settle with the consignor, the agent pays taxes as the taxpayer for the imported goods. The tax rate is also determined according to the goods' classification. In summary, accurately identifying the taxpayer and understanding how goods classification determines the tax rate is crucial for correct taxation.
If the agent is responsible for customs declaration and a series of import procedures, and does so in their own name, then the agent must pay customs duties, value-added tax (VAT), etc., as per regulations. Customs duty rates are found in the customs tariff based on the type of goods, and VAT is generally 13% or 9%, depending on the specific goods.
It depends on the contract's terms. If the contract explicitly states that the consignor bears the tax burden, then the consignor must pay the relevant taxes and fees. However, in practice, it's usually whoever declares the goods who pays the taxes.
The consignor and agent must agree on the issue of tax burden. Customs primarily levies customs duties, consumption tax (for some goods), and value-added tax on imported goods. Specific tax rates depend on the characteristics of the goods themselves.
For the taxation of agency imported goods, the key is to clarify who is the tax subject. Operating according to regulations and truthfully declaring the goods' situation is necessary to pay taxes accurately.
For agency import taxation, determining the tax item is very important, as tax rates vary significantly across different tax items. Once the tax item is determined, customs duties and other taxes and fees are paid according to the corresponding rate.
In fact, regardless of whether the consignor or the agent pays the taxes, complete documentation such as contracts and invoices must be prepared to facilitate accurate tax assessment by customs.
Generally, customs calculates customs duties based on the CIF (Cost, Insurance, and Freight) price of the goods. Then, VAT and other taxes and fees are calculated based on the customs value plus customs duties, etc.
When importing through an agent, both parties can first consult professional agencies like Zhongmaoda to understand the general taxation situation and be well-informed.
The origin of the goods may also affect the tax rate. If there is a preferential certificate of origin, a lower customs duty rate may be enjoyed.