Entrusted Import Agency: To Whom Does the Tax Invoice Belong?
Resolved
My company entrusted an agency company to import a batch of goods. The goods have been successfully imported, but a dispute has arisen regarding the ownership of the tax invoice. The agency company believes that since they handled the import process, the tax invoice should belong to them; my company, however, feels that as the actual owner of the goods, the tax invoice rightfully belongs to us. I would like to ask, in this entrusted import agency scenario, who should the tax invoice ultimately belong to? Are there any relevant regulations or conventions to refer to?
Trade Expert Insights Answers
In entrusted import agency business, the ownership of tax invoices generally follows the principle of "who pays the tax, owns the tax invoice." If the consignor pays the import duties and taxes directly, then the tax invoice naturally belongs to the consignor. If the agent advances the duties and taxes, they should hand over the tax invoice to the consignor after the consignor settles the relevant payments.
From a practical operational perspective, the tax invoice is crucial for the consignor, as it involves the company's cost accounting, input tax deduction, and other financial treatments. If the tax invoice does not belong to the consignor, the consignor may not be able to perform normal tax deductions, increasing their tax costs.
At the same time, both parties should clearly define the ownership of the tax invoice in the entrusted import agency contract to avoid similar disputes. If there is no clear agreement in the contract, it can be resolved through negotiation based on the above principles; if negotiation fails, legal channels can be pursued to determine the ownership of the tax invoice.
Generally, if the contract does not specify otherwise, it is common sense that the tax invoice belongs to the party that actually bears the taxes and fees, which is the consignor, as the consignor is ultimately the owner of the goods and the bearer of the taxes and fees.
Usually, it belongs to the consignor, because the consignor is the actual owner of the imported goods. The agent merely provides agency services. The tax invoice is more closely associated with the actual owner and holds significant importance for their financial processing.
Tax invoice ownership depends on the specific circumstances. If the agent is purely an agent and did not participate in tax payment, then the tax invoice certainly belongs to the consignor. If the agent has other complex situations, it requires specific analysis.
According to industry practice, unless otherwise specifically agreed, tax invoices are usually given to the consignor. After all, the consignor needs the tax invoice for subsequent business activities such as selling the goods and for financial accounting.
If there is a dispute between the parties regarding tax invoice ownership, first check what the contract states. If the contract is silent, considering that the consignor is the actual beneficiary of the goods, the tax invoice should belong to the consignor.
It is generally believed that if the consignor pays the taxes and fees, they should receive the tax invoice. This is linked to economic interests. If the agent takes the tax invoice, the consignor's subsequent tax processing would be very troublesome.
In normal entrusted import agency, tax invoices mostly belong to the consignor. The agent's primary responsibility is to complete the import process, and the tax invoice is more critical for the consignor's tax and financial processes.
In most cases, tax invoices for entrusted import agency belong to the consignor. This aligns with actual business logic and also benefits the consignor's subsequent business activities and tax processing.
From the perspective of actual needs, the consignor requires the tax invoice for cost accounting and tax deduction, so unless there are special circumstances, the tax invoice should be given to the consignor.