1.How to determine the timing of recognizing agency export revenue?

According to the latest "Enterprise Accounting Standards No.14 - Revenue" issued in 2025,the recognition of revenue from agency export business needs to meet the following conditions:Transfer of controlPrinciples.In specific operations,attention should be paid to three key nodes:

• DeclarationFormExportDate:Subjecttotheelectronicportdataofcustoms.
• Foreignexchangedocuments:musthaveDistinguishPrepaymentforgoodswithtoHowtohandleexportagencyforeignexchangeverification?payment
• Theagencyagreementstipulates:Specialattentionshouldbepaidtotheriskandrewardtransferclause.

Typical case: A garment company exported goods on March 15,2025,and received the settlement list from the agent on April 2.It should confirm the revenue in April rather than in the month of customs declaration,to avoid the tax risks caused by confirming the revenue in advance.

2.How to handle agency service fees in compliance with regulations?

The calculation of agency fees needs to distinguish between two models:

• Flatfeemodel
  • Servicefeeshallbecalculatedat1-3%oftheexportamount.
  • AspecialVATinvoiceissuedbytheagentmustbeobtained.
• Cost-plus pricing model
  • Theagent’sadvancepaymentmustbesupportedbyoriginalvouchers.
  • Bankchargesandsimilaritemsshouldbepresentedseparately.

Cost-plus pricing model:

In 2025,tax inspections will focus on the matching of agency fees with the value of exported goods,and it is recommended to retain the complete service pricing basis documents.

III.When Should Special VAT Invoices Be Issued to Avoid Pitfalls?

There are three key points to grasp in the VAT treatment of export agency business:

• The"PlaceofOrigininChina"onthecustomsdeclarationformmustmatchtheaddressontheinvoice.
• TheinvoiceissuancetimeshallnotbelaterthanthetaxfilingperiodofAprilintheyearfollowingtheexport.
• Thetaxexemptionfilingforcross-bordertaxableactivitiesmustbecompleteduponthefirstdeclaration.

Latest regulatory requirements: Starting from January 2025,the State Taxation Administration will automatically compare the export dates with the invoice issuance times through the "Gold Tax IV" system.Delayed invoice issuance will affect the progress of tax refunds.

IV.How should it be calculated?

Special accounting subjects must be established for export tax rebate agency:

• Refundabletaxreceivable=FOBprice×taxrefundrate
• Theactualtaxrefunddifferenceshallberecordedin"otherincome"or"non-operatingincome".
• Documentsrequiredfortaxrefunddeclaration:
  • CopyoftheExportAgencyAgreement
  • NotarizedPowerofAttorney
  • ForeignExchangeReceiptVerificationForm

Highlights of the new policies in 2025: Pilot regions allow agents to directly apply for tax refunds,but they need to sign a special authorization agreement with the clients.

5.Have You Fallen into These Accounting Pitfalls?

Common Error Handling Methods and Solutions:

• Incorrectlyrecordedthefullamountofforeignexchangeincomeintheaccount.

Correct practice: Recognize revenue based on the net amount after deducting agency fees.

Special reminder: In 2025,the State Administration of Foreign Exchange will strengthen the monitoring of export receipts,and it is recommended that enterprises use the "export income awaiting verification account" to manage their funds.

(Note: This article is compiled based on the latest policies in April 2025.Please refer to the requirements of the competent tax authority for specific operations.It is recommended to reconcile with the agent quarterly and keep complete logistics documents for at least 10 years.)