Is the service subject to value-added tax?

According to the latest "VAT Management Measures for Cross-Border Taxable Activities" issued in 2025,export agency services are subject to VAT.zero-rate policy.However,two scenarios require attention:

• Pureagencyservices(withoutinvolvingownershipofgoods):EligibleforVATexemptionpolicy.
• Comprehensiveagencyservices(includinglogistics,customsclearance,etc.):Differentservicetypesneedtobeseparatedforindividualtaxcalculation.
  • Forexample:Theagencyfeeispartiallytax-exempt,whiletheadvancedfreightissubjecttoa6%value-addedtax.

Practical case: A garmentThe company entrusts an agency to export goods worth $5 million,with an agency fee charged at 1.5%.Among this,$75,000 of the agency fee is tax-exempt,and $200,000 is advanced by the agency.The fee requires payment of 12,000 yuan in value-added tax.

How are the foreign exchange service fees collected by an agent taxed?

The tax treatment of agency service fees needs to be distinguished.Domestic paymentwithOverseas payment:

• Domesticenterprisespayagencyfees:
  • Withholdingandremittanceof6%VATisrequired.
  • Corporateincometaxiswithheldatarateof10%.
• Foreign enterprises paying agency fees:
  • IncompliancewiththeprovisionsofDocumentCaiShui[2023]No.37,taxexemptionmaybeappliedfor.

Special Note: The measures will be implemented starting from 2025.Cross-border Service Tax Filing DigitalizationThe system requires enterprises to complete the filing within 15 working days after payment.

What is the connection with tax agency?

Special attention should be paid to export tax rebates under the agency model.The subject-verb agreement rule:

• Theconsigneeonthecustomsdeclarationformmustbetheactualownerofthegoods.
• Theagencyagreementmustclearlyspecifytheownershipoftaxrefundbenefits.
• TheflowofspecialVATinvoicesshouldcomplywiththeprincipleof"whoexports,whoclaimsthetaxrefund."

Risk Case: A proxy company used its own name to claim tax refunds,resulting in the actual production enterprise being unable to deduct input tax.Ultimately,the refunded tax was recovered,and a fine was imposed.

What taxes and fees are involved in cross-border payments for agency services?

Key points of tax handling for cross-border payments in 2025:

• Paymentofoverseascommissions:
  • Theportionexceeding5%ofthecontractamountisnottax-deductible.
  • Itisnecessarytohandlethetaxregistrationforforeignpayments(theregistrationlimitwasadjustedto80,000USdollarsin2025).
• Payment of domestic agency fees:
  • AspecialVATinvoiceshouldbeobtained.
  • Pleasenotethedifferenceinthedeductionratiosbetweencommissionsandmarketingpromotionfees.

How to Avoid Tax Risks in Agency Mode?

It is recommended to establishFour-tier tax risk prevention and control mechanism:

• Thecontracttermsclearlyspecifytaxliabilities.
  • SpecialAgreementonInvoiceIssuanceMethod
  • Clarifytheapplicationoftaxtreatiestocross-borderservices
• Fund Flow Management
  • Establishadedicatedagencyfeeaccount
  • Retaincompletepaymentvouchers
• Document Filing System
  • Retaintheoriginalcustomsdeclarationdocumentsforatleast10years.
  • ElectronicarchivesmustcomplywiththeGB/T35600-2025standard.
• Regular tax health check
  • Itisrecommendedtoconductaquarterlyreviewofexporttaxrebatecompliance.

Conclusion: In 2025,the General Administration of Customs and the State Taxation Administration will strengthen their cooperation in the field of taxation and customs clearance.Cross-departmental data comparisonIt is recommended that enterprises make the following preparations in advance: establish a digital tax management system,retain complete transaction chain evidence,and regularly participate in tax training for AEO-certified enterprises by customs.For uncertain tax-related matters,promptly consult professional trade tax advisors.