Agency export,Whose income does it actually count as?

According toThe "Accounting Standards for Business Enterprises No. 14 - Revenue" revised by the Ministry of Finance in 2023，The agency export business should be distinguishedGross MethodwithNet methodTwo confirmation methods:

• Gross MethodApplicable scenarios:
  • The agent bears the main inventory risk.
  • Has independent pricing power
  • Actually bears the credit risk
• Net methodApplicable conditions:
  • Only a fixed percentage service fee is charged.
  • Not responsible for the quality risk of the goods
  • No advance payment for procurement funds.

What are the changes in VAT treatment for 2025?

According to the announcement issued by the State Taxation Administration in 2024,Supplementary Announcement on the "Administrative Measures for Tax Exemption on Cross-Border Taxable Activities"The handling of value-added tax for export agency shall continue to adhere to the following principles:

• Pay 6% VAT on agency service fees
• The value of goods is subject to the export tax exemption policy.
• The deadline for foreign exchange verification and cancellation remains unchanged at 12 months.
• The "Operating Entity" column in the customs declaration form determines the subject of tax refund.

What should be noted when filing corporate income tax returns?

Special attention is neededHandling of Tax-Accounting Differences:

• When accounting recognizes revenue using the net method:
  • The total value of goods must still be disclosed in the tax return.
  • Service fee income is presented separately.
• Transboundary PaymentsService fee must be completed.tax filing
• Overdue foreign exchange receipts must be converted to domestic sales and subject to tax supplementation.

What situations are prone to trigger financial and tax risks?

• The contract terms are unclear.:

  A company was required to fully recognize its revenue and pay over 800,000 yuan in back taxes and late fees after tax authorities determined that the contract lacked clear provisions on risk allocation.

• The payment and settlement methods are in disarray.:

  Direct payment from overseas customers to the factory results in inconsistency in the three flows, affecting tax refund eligibility.

• Irregular document management:

  Missing proforma invoice or commission agreement, unable to substantiate the agency business operations.

How to establish a compliant accounting system?

• EstablishedFour-single correspondenceMechanism:
  • Agency Agreement and Customs Declaration Matching
  • Matching the Receipt Voucher with the Settlement Statement
  • Service fee invoice matches the split account details
• Set upAuxiliary accounting subjects:

  It is recommended to establish detailed sub-accounts under "Main Business Revenue" for "Agency Service Revenue" and "Goods Value Posting Revenue".

• adoptedElectronic Ledger System:

  Track the progress of foreign exchange collection, verification, and tax refund for each order in real time.