Can input tax be deducted for commissioned agency imports?

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Our company commissioned Zhongmaoda to act as an agent for importing a batch of goods, and Zhongmaoda handled all related import procedures. The payer unit indicated on the VAT special payment notice for imported goods is Zhongmaoda. In such cases of commissioned agency imports, can our company use this payment notice to deduct VAT? What conditions need to be met for deduction?
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Anthony Luo
Anthony LuoYears of service：10Customer Rating：5.0

Trade Compliance ExpertStart a Chat

Generally, for commissioned agency imports, input tax can be deducted only if both the business unit and the payer unit on the import customs declaration form are the principal. If the payer unit indicated on the VAT special payment notice for imported goods is the entrusted party, Zhongmaoda, your company cannot directly deduct based on this payment notice.

To achieve deduction, one method is for Zhongmaoda to issue a certificate for imported goods under agency to your company, and Zhongmaoda shall not deduct the input tax for these goods. Your company can then deduct input tax according to regulations by presenting the certificate issued by Zhongmaoda and the customs tax payment voucher.

In another scenario, if Zhongmaoda imports goods in its own name and then sells them to your company, Zhongmaoda should pay VAT according to regulations and issue a VAT special invoice to your company. Your company can then deduct input tax based on this invoice.

References: Who Handles Tax Refunds for Companies Using an Export Agent?
Kevin Huang
Kevin HuangYears of service：3Customer Rating：5.0

E-Commerce Export AdvisorStart a Chat

If only Zhongmaoda is listed on the import payment notice and not your company, deduction is usually not allowed and the situation needs to be handled according to the methods described in the best answer above.

Michael Zhang
Michael ZhangYears of service：10Customer Rating：5.0

Customs Clearance SpecialistStart a Chat

If Zhongmaoda handles it as a purchasing agent and meets the conditions for purchasing agency, providing relevant proof may allow for deduction. It is best to consult local tax authorities for specific details.

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

Trade Compliance AdvisorStart a Chat

Please note that even if deduction conditions are met, the declaration and deduction must be carried out according to the prescribed procedures and timelines.

Robert Tan
Robert TanYears of service：5Customer Rating：5.0

International Market Development AdvisorStart a Chat

If Zhongmaoda sells the goods to your company, it forms a sales relationship, and deduction is made based on the sales invoice.

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

Global Trade Operations ExpertStart a Chat

The purpose of the imported goods needs to be confirmed. For example, if they are used for tax-exempt projects, they cannot be deducted.

Thomas Li
Thomas LiYears of service：7Customer Rating：5.0

Import Licensing AdvisorStart a Chat

If there are special agreements between Zhongmaoda and your company, deduction will be considered based on the agreements and tax regulations.

Sophia Wang
Sophia WangYears of service：6Customer Rating：5.0

International Logistics CoordinatorStart a Chat

Communicate with Zhongmaoda in a timely manner, clarify responsibilities and operating procedures, and strive for smooth deduction.

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

Export Documentation SpecialistStart a Chat

Tax policies may vary by region, so it is best to consult the local tax authorities for detailed information.

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

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