Agency export,Is VAT payment required?

Under current 2025 policies, VAT treatment for export agency business can be divided into three levels:

• Export goodsitself: Qualified goods exports continue to enjoy exemption/credit/refund policy, with agents not directly bearing goods VAT
• Agent Service Fee: Subject to 6% VAT rate (3% collection rate for small-scale taxpayers)
• 37. Special circumstances: If agents simultaneously provide value-added services like procurement financing, mixed sales tax determination may apply

How is corporate income tax levied on agency service revenue?

Corporate income tax calculation requires focus on two dimensions:

• Revenue recognition: Agency commissions typically recognize income using cash basis
  • Cross-border payments require attention to permanent establishment determination rules
  • Related-party transactions must comply with arms length principle
• Cost deduction: Actually borne customs clearance, logistics and other expenses are tax-deductible
  • Complete expense voucher chains must be preserved
  • Foreign exchange gains/losses must be handled according to tax regulations

Does export agency involve tariffs?

Tariff payment responsibilities differ fundamentally by trade method:

• Export stage: China imposes no export tariffs on most commodities
• Import country tariffs: Borne by overseas buyers
  • Trade terms must be clearly specified in contracts (DDP clauses being exceptions)
  • 35 additional countries will be eligible for AEO mutual recognition preferential tax rates in 2025

Which additional taxes require attention?

In addition to major taxes, additional taxes and fees that may be involved in export agency include:

• Urban maintenance and construction tax: 7% of the actual paid VAT amount (urban areas)
• Education surcharge: 3% of the VAT amount
• Local education surcharge: Varies by province (typically 2%)
• Stamp duty: Agency contracts subject to 0.3‰ stamp duty as technical contracts

Year 2025Export tax refundWhat are the new changes in policies?

Three major policy adjustments to focus on this year:

• Digitalized declaration: Paperless declaration coverage rate reaches 100% for the entire process
• Tax refund speed improved: Class A enterprises tax refund processing time reduced to 3 working days
• Negative list management: 6 additional categories of goods temporarily suspended from tax refund processing

How to avoid tax risks in export agency?

Recommendations based on 20 years of practical experience:

• Require the agent to provideDuplicate of tax payment certificate
• Regular verificationCustoms export datawithTax refund declaration data
• Focus onState Administration of Foreign ExchangeForeign exchange verification requirements
• EstablishedExport tax refundFiling documentsElectronic ledger