I.Is commission subject to value-added tax (VAT)?

According to the latest Implementing Regulations of the Value-Added Tax Provisional Regulations in 2025,the export agency commission belongs toModern Services - Brokerage and Agency ServicesCategories,the following criteria should be noted for judgment:

• Domesticagencyservices:Regardlessofwhethertheservicerecipientislocateddomestically,aslongastheplaceofserviceprovisioniswithinthecountry,a6%value-addedtax(VAT)isrequired.
• Cross-borderagencyservices:EligiblefortheVATzero-rateunderthetax-exemptcircumstancesspecifiedinDocumentCaiShui[2025]No.3,andmayapplyforVATexemption.
• Specialcircumstances:IfthecommissionconstitutesAdditionalcharges,itmustbeconsolidatedintotheexportsalesamountforcalculation.

2.What is the specific process for declaring commission expenses?

The application process for 2025 has been optimized into three steps:

• Step1:Confirmthenatureoftheservice
  • Obtainthe"Cross-BorderTaxableServicesTaxExemptionFilingForm"fromtheagent.
  • Verifytheservicelocationasstipulatedintheservicecontract.
• Step 2: Calculate the taxable sales amount
  • Domesticservices:Commissionamount÷(1+6%)×6%
  • Cross-borderservices:Azerotaxratecanonlybeappliedaftercompletingthetaxexemptionfiling.
• Step 3: Fill out the declaration form
  • VATReturnSupplementaryInformation(3),Column4
  • "ListofService,RealEstate,andIntangibleAssetDeductionItems"

III.Which tax documents must be retained?

In 2025,the new policy on electronic certificates requires enterprises to retain the following materials for at least five years:

• Agencyexportagreement(original)
  • Theoriginalcopyoftheagencyagreementfiledwiththecustoms
  • Bankforeignexchangereceiptandpaymentvoucher
• Tax documents:
  • VATSpecialInvoice(DomesticServices)
  • ProformaInvoice(Cross-borderServices)
  • "Cross-BorderServiceTaxExemptionFilingReceipt"

IV.What are the special treatments for cross-border payment commissions?

Special provisions for payments to overseas agents:

• Withholdingandremittanceobligation:
  • Non-residententerprisesarerequiredtowithholdenterpriseincometaxatarateof10%.
  • WithholdingVATat6%(exceptfortax-exemptcircumstances).
• Conditions for Tax Exemption Application:
  • Theagencyserviceoccursentirelyoverseas.
  • Therecipientconsumesservicesoverseas.
  • CompletetheelectronicfilingwiththeStateTaxationAdministration.

V.What are the common pitfalls to be aware of when filing?

Based on the inspection cases in 2025,three major risk points were summarized as follows:

• Confusingcommissiontypes:
  • Acompanymistakenlytreatedsalesrebatesascommissions,resultinginataxpaymentsupplementof1.2millionyuan.
  • Criteriafordistinction:whetheritisdirectlyrelatedtoagencyservices.
• Incorrect application of tax exemption:
  • Cross-borderservicesfailedtocompleteelectronicfiling,resultingintaxexemptionbeinginvalid.
  • From2025onwards,itwillbemandatorytosubmitmaterialsthroughthe"singlewindow".
• Improper voucher management:
  • Thenewelectroniccontractrequiresthepreservationofhashvalueverificationdocuments.
  • Cross-borderpaymentsrequirecontractstoberetainedinbothChineseandEnglishversions.

Sixth,what are the latest policy changes in 2025?

This year’s three key focus areas for revision:

• ValidityofElectronicVouchers:
  • Blockchain-basedelectroniccontractscanreplacepaperoriginals.
  • ItmustcomplywiththeGB/T38540-2025certificationstandard.
• Simplified filing process:
  • Thetimelimitfortax-exemptfilingofcross-borderserviceshasbeenshortenedto3workingdays.
  • Implementthenewmechanismof"one-timefiling,nationwideapplicability".
• Regulatory requirements upgrade:
  • AspecialexplanationmustbeattachedforcommissionpaymentsexceedingUSD50,000pertransaction.
  • Newregulationsonestablishinganelectronicledgerforcommissionpayments.