The company plans to find an agency company to import goods and wants to understand the tax point of agency import service fees, fearing being ripped off. The best answer points out that the VAT rate for general taxpayer agency import services is 6%, and small-scale taxpayers are reduced to 1% in 2023. Additional taxes based on VAT will also be involved, and the actual tax point varies depending on taxpayer status and local policies. When choosing an agency company, tax details must be clarified.
What taxes are involved in agency import? Come and find out!
Resolved
I plan to find an agency company to help import a batch of goods. I haven't dealt with agency import before and want to know what taxes are required for agency import? Will there be differences in tax payment for different types of goods? If you can explain the calculation methods for each tax in detail, that would be great, so I have a better idea and know how much capital to prepare.
Trade Expert Insights Answers
Agency import generally involves the following taxes:
First is customs duty, the tax rate of which is determined by the HS code and country of origin of the goods. The calculation formula is: Customs Duty = Dutiable Price × Customs Duty Rate. The dutiable price is usually based on the CIF price (Cost, Insurance, and Freight).
Second is value-added tax (VAT). Most goods have a VAT rate of 13%, and some agricultural products have a rate of 9%. The calculation formula is: VAT = (Dutiable Price + Customs Duty) × VAT Rate.
Furthermore, for certain specific goods, such as tobacco, alcohol, and cosmetics, consumption tax is also levied. Consumption tax calculation methods include ad valorem, specific, and compound taxation. For example, when calculated ad valorem, Consumption Tax = (Dutiable Price + Customs Duty) ÷ (1 - Consumption Tax Rate) × Consumption Tax Rate. Different types of goods have different tax rates due to different HS codes, so the tax payable will vary.
In addition to the above, if the imported goods are subject to anti-dumping or countervailing measures, anti-dumping duties or countervailing duties must also be paid. The specific tax rates depend on relevant announcements.
Some goods imported may be subject to tonnage tax. If ships are imported and meet relevant regulations, tonnage tax will be levied. However, customs duties, VAT, and consumption tax are the most common in agency import.
If the imported goods are subject to specific tax reductions or exemptions, customs duties and import VAT can be exempted within the prescribed scope, such as for scientific research supplies or specialized goods for people with disabilities.
Additionally, exchange rates also have an impact on tax calculation. The exchange rate on the day the customs accepts the import declaration is generally used to calculate the dutiable price. Therefore, paying attention to exchange rate fluctuations is also quite important.
If agency import involves goods subject to consumption tax, for domestic sales, the issue of consumption tax deduction may also need to be considered, otherwise it will affect cost accounting.
Taxes and fees levied by customs during the import process will be accompanied by corresponding payment certificates, which should be kept properly. This is useful for subsequent financial processing and potential tax refunds.
Some goods may be subject to provisional tax rates upon import, which are more favorable than the most-favored-nation (MFN) rates. This depends on the tariff adjustment policies of the year.
For cross-border e-commerce retail import agencies, the tax policies are slightly different, with special limits and calculation methods for tax rates, such as regulations on single transaction limits.