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What taxes do agency imports and exports have to pay?
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TRACKING NO. 20260113 / GLOBAL Zhongshen Trade · 23+ Years of Expert Trade Agency
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Our company has just started doing agencyimport/export business, and wants to figure out what taxes exactly need to be paid? Is it paid by the client or us? How to invoice and pay taxes for agency fees? Afraid of making mistakes and having tax risks.
Grace WangYears of service：10Customer Rating：5.0
Senior Foreign Trade ConsultantStart a Chat
The tax question you asked lies at the core of the legal nature of the agency relationship. If it is a pure agency model (i.e。you only collect agency fees，and the payment for goods is collected directly by the entrusting party)，then the customs duties，VAT，and consumption tax in the import link are all borne by the entrusting party，and you，as the agent，only pay 6% VAT and surcharges on the agency fee income. But the key lies in whether the customs recognizes your agency identity. A complete agency agreement，entrustment authorization letter，and "Agent Import Goods Certificate" required by customs must be provided. The risk point is: if customs determines that you are the actual purchaser，you need to bear all import taxes and fees，and may face penalties for false declaration of dutiable value. It is recommended to clarify tax bearing clauses in the contract and ensure that the filling of "operating unit" and "consignee unit" on the customs declaration form conforms to the agency identity.
Andy GuoYears of service：3Customer Rating：5.0
Supply Chain Management ExpertStart a Chat
From the perspective of logistics operations, tax issues directly affect your cash flow and customs clearance timeliness. Even if taxes are ultimately borne by the entrusting party, customs usually requires the declaring unit (i.e., you) to pay taxes first before releasing the goods. Therefore, you need to clarify in the contract: whether you will advance the tax payment, how long the advance period is, and whether to charge a fund occupation fee. It is recommended to choose EXW or FOB terms, where you control the transportation and customs clearance process, to avoid tax payment confusion caused by the entrusting party designating a freight forwarder. In addition, open the tax payment function at the electronic port in advance, and reserve sufficient tax turnover funds, usually recommended to be prepared at 20-30% of the cargo value, to avoid additional costs incurred by goods detained at the port due to unpaid taxes.
Linda GaoYears of service：7Customer Rating：5.0
Documentation SupervisorStart a Chat
When you discuss cooperation with the entrusting party, tax clauses are the key to building trust. It is recommended to proactively provide a "Tax Liability Division Description" during the contract negotiation stage, listing in tabular form: import duties, VAT, and consumption tax are borne by the entrusting party, and you only collect X% agency fee and issue a 6% VAT invoice. For situations where you need to advance tax payments, clearly agree on the advance limit and account period, such as "advance tax payment does not exceed 500,000 RMB, account period 30 days, overdue charged at annualized 8% fund occupation fee". In communication scripts, you can emphasize: "As a professional agent, we will help you optimize the customs clearance process, but taxes are levied by customs according to law. Only by ensuring compliance together can we cooperate for a long time." This appears professional and avoids subsequent disputes.