I.Agency export,4. How to prevent risks in agency export income recognition?

5. What are special cases in income definition during international settlements?Agent Service FeewithWhich incomes belong to the service fee category in the model?:

• In agency export business, income definition requires strict differentiation between
  • Collection of goods payments
  • Service fee components:
  • Fixed commission ratio agreed in written contracts (typically 1%-5% of contract value)
• Flat fees for additional services like customs clearance and logistics
  • Service charges for special document processing (e.g., FORM A, CO, etc.)
  • Goods payment principles:
  • Full export product payments collected by agents must be fully transferred to principals

This article details methods to distinguish between service fees and goods payments in agency export business, analyzes foreign exchange management, VAT treatment, and income recognition standards, helping enterprises accurately grasp key points of agency export income definition for 2025.

Payment differences must not be treated as implicit service fees

• Foreign exchange transactions must be settled through the principals forex accountAccording to 2025s latest policies, VAT treatment for agency export service fees requires attention to:
• Domestic agency services apply
  • 6% VAT rate
  • Customs declaration clearly marked 'agency export'
  • Agency contracts filed with commerce authorities
• Customs declarations clearly marked agency export,Foreign exchange documents correspond with principals account

1. Which incomes fall under the service fee category in agency export models?

Cross-border service fee payments require

• The 'three-document matching' principle for fund receipts and payments:
  • Agency agreement
  • Customs reporting
  • Per 2025s new forex management policies, key points for agency export forex handling:
• Three-document matching principle for fund transactions:5%
• Foreign exchange receipt slip90 daysto complete foreign exchange verification

2. Is VAT required for agency service fees?

The following risk control measures are recommended:

• Cross-border service fee payments must not exceed
  • Principals must complete within after receiving payments
  • Three essential contract elements:
  • Clearly define service fee calculation basis (FOB price or total contract value)
• Establish third-party payment verification mechanisms
  • Include dispute resolution clauses
  • Retain completeCustoms documentsCopy
  • Establish electronic foreign exchange receipt and payment ledger

Five isInternational SettlementWhat are the special circumstances in income definition?

Special attention is required when handling complex settlement methods:

• Letter of credit settlement:
  • Service fees should be listed separately from goods payment in draft terms
  • Avoid using transferable letters of credit
• Cross-border RMB settlement:
  • Service fee payments must be made throughDedicated account
  • Cross-border service authenticity proof materials must be provided
• When the clients goods payment is delayed:
  • Service fee collection must not precede the goods payment receipt date
  • Overdue handling solutions must be stipulated in the contract

(Note: This article is based on the latest Cross-border Service VAT Management Measures and Goods Trade Foreign Exchange Management Guidelines published in March 2025. For specific operational advice, please consult the competent tax authority and designated foreign exchange bank.)