Agency export,Who bears tax obligations under this model?

According to the 2025 latest Provisional VAT Regulations Implementation Rules for agency export businesses:

• Entrusting PartyisExport tax refundthe statutory applicant
• Agentonly bears collection and payment agency obligations
• Handling in special circumstances:
  • If the agency agreement stipulates a "false self-operation" clause, the tax authorities may determine the agent as the taxpayer.
  • Cross-border comprehensive service enterprises must file separately when applying the "tax exemption without invoice" policy.

AgentlyExport goodsComplete tax treatment process

2025 standard operating procedures include 5 key steps:

• The contract signing phase: Clearly specify the "form"customs clearance, Substantial Agency" clause
• Customs declaration stage: The agent must indicate the word "agent" in the "domestic consignor" field of the customs declaration form.
• Foreign exchange settlement stage: principals must provide original foreign exchange receipts for tax rebate processing
• Tax rebate declaration stage: agents must issue Agency Export Goods Certificate within shortened 15 working days (2024 new policy)
• Tax clearance stage: cross-border service fees require separate accounting applying 6% VAT rate

AgentlyExport tax refundHow to calculate?

Taking 2025s 13% export rebate rate for mechanical/electrical products as example:

• VAT treatment:
  • Clients purchase input tax: 1 million × 13% = 130,000
  • Export sales: 1.5 million (0% tax rate applicable)
  • Refundable tax amount = Min(Purchase input tax, Refund rate limit) = 130,000
• Corporate income tax treatment:
  • Clients recognized income: 1.5 million ÷ exchange rate 6.8 = $220,600 USD
  • Agents recognized income: Service fee 50,000 × 6% = 3,000 VAT

Common tax risks in agency exports for 2025

• Risk of non - integration of the four flows: Goods flow, capital flow, document flow, and contract flow must fully correspond
• Foreign exchange receipt overdue risk: New policy requires completing foreign exchange receipt before April VAT filing deadline in the year following export
• Missing supporting documents risk: 2025 new requirement for electronic signature version of Export Goods Loading Order filing
• Related-party transaction risk: Agency fees 30% below industry standard will trigger anti-tax avoidance investigation

3 practical points foreign trade enterprises must know

• Contract signing specifications:
  • It is essential to clearly define the legal relationship of "entrusted export agency."
  • Service fee clause should separately list tax-exclusive amount
• Document management requirements:
  • Retain complete electronic customs pre-entry records (new in 2025)
  • The foreign exchange income and expenditure declaration must include the remark "export on behalf of others".
• Risk control mechanisms:
  • Recommend purchasing export credit insurance to cover tax compliance risks
  • Quarterly export tax refund calculation and capital reserve

(Note: This article is based on policies announced before April 2025. Specific operations should follow interpretations by competent tax authorities. For major transactions, consult professional tax advisors for case analysis.)