What isWhat is the differential taxation on services?

Differential taxation is a special tax calculation method within the VAT chain.,applicable to enterprises providing cross-border agency services.According to the provisions of Document Cai Shui [2016] No.36,international freight forwarding services,For agency and other services,the value-added tax can be calculated and paid based on the balance after deducting the payments made to overseas entities.

Specifically for export agency services,the total consideration and additional charges received by the enterprise include,The balance after deducting government funds or administrative fees collected on behalf.As sales revenue.For example,in the case of export tax rebate agency services,the tax rebate collected on behalf of clients is not included in taxable sales revenue.

II.Which export agency services are eligible for differential taxation?

• Internationalfreightforwardingservices
  • //LandFreightForwardingServices
  • Multimodaltransportagencyservices
• Export Tax Rebate Declaration Agency
  • Customsdeclarationdocumentagency
  • ForeignExchangeVerificationAgency
• Logistics services in special customs supervision zones
  • Bondedwarehousingagency
  • Customsclearanceagent

3.What is the specific calculation method for differential taxation?

Calculation formula: Tax payable = (Total payment + Additional charges - Collected payments) ÷ (1 + 6%) × 6%

Taking a certain export agency enterprise in 2025 as an example:

• Agencyservicefee:500,000yuan
• Collectionofexporttaxrebate:1millionyuan
• Declarablesalesamount=(50+100-100)÷1.06≈471,700yuan
• Value-addedtaxpayable=47.17×6%≈28,300yuan

4.What documents are required for differential taxation?

• ProofofCollectionDocuments
  • StateAdministrationofForeignExchangeVoucher
  • Customs-issuedtaxrefundcertificate
• Service Contract Terms
  • Clearlyspecifythenatureofthefundstobecollected
  • Specifythemethodoffundtransfer.
• Bank statement voucher
  • IncomeandExpenseAllocationRecord
  • PaymentVoucher(forcross-borderpayments)

5.What new regulatory requirements will there be in 2025?

According to the announcement issued by the State Taxation Administration at the end of 2024,the following new regulations will be implemented starting from 2025:

• ElectronicVoucherFilingSystem
  • AlldifferencedeductionvouchersmustbeuploadedtotheGoldenTaxPhaseIVsystem.
  • Cross-borderpaymentdocumentsmustbeaccompaniedbyanotarizedtranslation.
• Special Provisions on Connected Transactions
  • Affiliatedpartyagencyservicesmustprovideproofofindependenttransactions.
  • Transferpricingdocumentationmustbefiledseparately.
• Update of Risk Warning Indicators
  • Adeductionratioexceeding85%willtriggerataxaudit.
  • Forthreeconsecutivemonthsofzerodeclaration,awrittenexplanationisrequired.

VI.How to Prevent Common Risks in Differential Taxation?

• BillManagementRisk
  • Case:Acompanywasrequiredtorepay320,000yuanintaxesduetothelossofitscustomsdutydrawbackdocuments.
  • Countermeasure:Establishadualbackupsystemforelectronicrecords.
• Accounting division of risks
  • Case:Confusingagencyfeeswithpaymentforgoodsleadingtooverpaymentoftaxes
  • Countermeasure:Establishadedicatedaccountingsubjectforhandlingcollectionsandpaymentsonbehalfofothers.
• Risk of policy application
  • Case:IncorrectApplicationofDifferentialTaxationtoDomesticTransportAgencyServices
  • Countermeasure:EstablishaBusinessTypeDeterminationFlowchart

VII.What tax issues should be considered when selecting a proxy service provider?

• Inspectserviceproviders’Cross-borderServiceQualificationFiling
• ConfirmthatthecontractincludesSpecialTermsforCollectionofFunds
• (Payattentiontothecompletenessofdeclarationelements)VATDifferentialTaxationFilingFormPhotocopy
• RegularlyobtainTaxpaymentcertificateforcollectedfunds