I have doubts about how proxy export tax refund companies handle tax payments and want to understand the involved tax types, tax bases, and declaration/payment methods. The best answer states that for VAT, agency services are taxed as modern services, and buy-out exports are taxed at the goods tax rate; corporate income tax is levied on taxable income. Declarations are monthly or quarterly for VAT, and quarterly for corporate income tax pre-payments with annual reconciliation, all handled through the electronic tax bureau.
What taxes are incurred in agency export? Come and find out!
Resolved
Our company plans to engage in agency export business and wants to understand in advance what taxes will be incurred. We hope to have a detailed explanation, including how these taxes are calculated and who bears them, so that we can have a better understanding and be more targeted when choosing an agency export company.
Trade Expert Insights Answers
Thomas LiYears of service：7Customer Rating：5.0
Import Licensing AdvisorStart a Chat
The main taxes involved in agency export include the following: Firstly, Value-Added Tax (VAT). If the exported goods are eligible for the exemption-offset-refund policy, manufacturing enterprises adopt the exemption-offset-refund method, and foreign trade enterprises adopt the exemption-refund method. For example, for foreign trade enterprises, the amount indicated on the special VAT invoice for the purchased exported goods multiplied by the refund rate is the amount of tax to be refunded, and the difference between the tax rate and the refund rate is included in the cost. If the goods are not eligible for the refund policy, they may be treated as domestic sales and subject to VAT. Secondly, customs duty. Some exported goods need to pay customs duty, and the calculation method is related to the dutiable price and the customs duty rate of the goods. The dutiable price is generally adjusted based on the FOB price. In addition, there may be surtaxes such as urban maintenance and construction tax and education surcharge, which are calculated based on the actual amount of VAT and consumption tax paid. Generally, taxes such as VAT and customs duty are borne by the principal, but the specific details depend on the agreement in the agency export contract.
In actual operation, the accurate tax situation should be determined based on the nature of the specific exported goods, the trade method, etc.
Robert TanYears of service：5Customer Rating：5.0
International Market Development AdvisorStart a Chat
In addition to what has been mentioned above, stamp duty may also be involved sometimes. If a agency export contract is signed, stamp duty is levied at a certain percentage of the contract amount, which is usually not high. However, this part of the tax is relatively small and easily overlooked.
David ChenYears of service：10Customer Rating：5.0
Trade Compliance AdvisorStart a Chat
For the export of some special commodities, resource tax may also be involved, such as crude oil, natural gas, and other resource products. The calculation of resource tax is based on the sales amount or sales volume of the product, and the tax rate varies depending on the type of resource.
Olivia LiuYears of service：6Customer Rating：5.0
Foreign Exchange Risk ManagerStart a Chat
If agency export involves goods subject to consumption tax, such as cosmetics, high-end watches, etc., there will also be consumption tax. Manufacturing enterprises directly exporting goods subject to consumption tax or exporting through foreign trade enterprises are exempt; foreign trade enterprises exporting goods subject to consumption tax on their own will have the consumption tax refunded.
Anthony LuoYears of service：10Customer Rating：5.0
Trade Compliance ExpertStart a Chat
In addition, local education surcharges are also levied at a certain percentage based on the actual amount of VAT and consumption tax paid, and the percentage may vary slightly in different regions.
Emma ZhaoYears of service：3Customer Rating：5.0
Export Documentation SpecialistStart a Chat
Water conservancy construction funds may also be involved, which are usually calculated as a certain percentage of sales revenue, and the specific proportion varies according to local regulations. It is a local government fund.
Richard WuYears of service：8Customer Rating：5.0
Global Trade Operations ExpertStart a Chat
If there are commission expenses during the export process, there may also be issues of withholding and paying individual income tax or corporate income tax, depending on whether the recipient is an individual or a company.
Michael ZhangYears of service：10Customer Rating：5.0
Customs Clearance SpecialistStart a Chat
Disability security funds are generally not directly incurred due to agency export. However, if the overall operation of the enterprise fails to meet the proportion of employing disabled persons as required, disability security funds will be paid according to regulations, which can be considered a related expense from the perspective of enterprise operation.
Kevin HuangYears of service：3Customer Rating：5.0
E-Commerce Export AdvisorStart a Chat
Cultural undertaking construction fees will be paid according to regulations if the export enterprise belongs to the advertising or entertainment industry. The basis for calculation is the taxable sales amount obtained from providing relevant services.
Linda GuoYears of service：3Customer Rating：5.0
Trade Dispute MediatorStart a Chat
Vehicle and vessel tax needs to be paid according to regulations if the enterprise's export business involves its own transportation vehicles, ships, etc. The tax amount is calculated based on the type of vehicle, ship, and relevant standards.