Who does the export agent refund tax go to?
Resolved
Our company has items to export and has hired an agent to help with tax refund related matters. Now we are a bit confused, who does the export agent tax refund ultimately go to? Is it to our company that commissioned the agent, or does the agent company keep it for themselves? We are not quite clear on the rules here and hope that someone knowledgeable can explain it to us so that we can clarify our rights.
Trade Expert Insights Answers
Linda GuoYears of service：3Customer Rating：5.0
Trade Dispute MediatorStart a Chat
Export agent tax refunds usually go to the principal, which is your company. From the principle of tax refund, export tax refund is to encourage exports, so that domestic products can enter the international market at a tax-free cost, enhancing competitiveness. In the case of agent export business, the principal is the actual exporter and seller of the goods, and has borne the value-added tax and other tax burdens in the domestic production, procurement and other links, so the tax refund should be returned to the principal.
The main responsibility of the agent company is to assist in handling export tax refund procedures, including collecting and sorting out customs declaration forms, invoices, and other relevant documents and submitting them to the tax authorities. The agent company will charge a certain service fee, but the tax refund amount does not belong to them. However, to successfully obtain the tax refund, the principal and the agent need to cooperate closely, operate according to the prescribed procedures and requirements, and provide true and effective information.
Thomas LiYears of service：7Customer Rating：5.0
Import Licensing AdvisorStart a Chat
Export agent tax refunds go to the principal company. The agent company merely provides services and helps the principal handle the tedious tax refund process, earning service fees in the process. The tax refund money still belongs to the principal.
Emma ZhaoYears of service：3Customer Rating：5.0
Export Documentation SpecialistStart a Chat
It definitely goes to the company that commissions the export, the agent company is just helping to run errands, and the tax refund benefits naturally go to the company that actually exports the goods and bears the initial tax burden.
Kevin HuangYears of service：3Customer Rating：5.0
E-Commerce Export AdvisorStart a Chat
The tax refund goes to the principal. If the agent company privately withholds the tax refund amount, it is a violation of regulations, and the principal has the right to pursue its liability.
Anthony LuoYears of service：10Customer Rating：5.0
Trade Compliance ExpertStart a Chat
It is refunded to the principal. This is based on the principal-agent relationship. The principal is the owner of the goods and the substantive operator of the export business, so the tax refund naturally belongs to the principal.
Sophia WangYears of service：6Customer Rating：5.0
International Logistics CoordinatorStart a Chat
It is refunded to the company that commissions the export agency. The agent company plays a role in assisting with the tax refund procedures, and is not the beneficiary of the tax refund.
Richard WuYears of service：8Customer Rating：5.0
Global Trade Operations ExpertStart a Chat
Generally, it is refunded to the principal. The agent company's job is to assist in completing the tax refund process, and the tax refund funds will not remain with the agent company.
David ChenYears of service：10Customer Rating：5.0
Trade Compliance AdvisorStart a Chat
The recipient of the export agent tax refund is the company that commissions the export. The agent company has no reason to possess the tax refund amount and merely collects agency fees as agreed.
Olivia LiuYears of service：6Customer Rating：5.0
Foreign Exchange Risk ManagerStart a Chat
The tax refund goes to the principal. The principal is the subject of the export business and bears the taxes generated by the domestic circulation of goods. Therefore, the tax refund naturally belongs to the principal.
Michael ZhangYears of service：10Customer Rating：5.0
Customs Clearance SpecialistStart a Chat
It is refunded to the commissioned enterprise. The agent company only provides services. The tax refund, as a policy preference for exporting enterprises, should go back to the commissioned enterprise.