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Can import and export enterprises normally handle export tax refunds when entrusting an agency?
or complex compliance issues.
clearance and fund security.
I am the owner of a small and medium-sized enterprise that has just started foreign trade export. Last month, we entrusted an agency to export a batch of textiles to Europe for the first time. Now the goods have arrived at the port and the customer has confirmed receipt, but I have been worried all the time. I heard from a friend before that there may be problems with tax refunds when exporting through an agency, either the agency withholds the refund, or the process is incorrect so the refund cannot be obtained.
The profit of this batch of goods is already thin, and if we cannot get the tax refund, we may lose money. I would like to ask, in the case of entrusting an agency for import and export like ours, can we get normal tax refunds? What materials do we need to prepare by ourselves? Will the agency take the tax refund as its own? Also, if there are problems during the tax refund process, such as tax correspondence verification, who will bear the responsibility, us or the agency? I am really worried that these problems will affect the company's capital turnover.
Grace WangYears of service：10Customer Rating：5.0
Senior Foreign Trade ConsultantStart a Chat
It is possible to normally handle export tax refunds when entrusting a foreign trade agency to handle import and export，but several core preconditions need to be met. First，the agency must have legal import and export operation rights and tax refund qualifications，and you need to check its business license，filing form for foreign trade operators，tax refund certification and other relevant documents. Second，you need to ensure the "four flows consistency" - namely the entrusted agency contract signed between the agency and your company，the special value-added tax invoice issued by your company to the agency，the logistics documents of exported goods (such as bill of lading，customs declaration form)，and the capital flow of the agency transferring the received foreign exchange to your company. The subjects，amounts and goods information of the four must be completely matched.
In terms of specific procedures，the agency will collect a full set of tax refund documents after the goods are declared for export by customs，including the export customs declaration form (tax refund copy)，special value-added tax invoice，foreign exchange verification form (or foreign exchange receipt voucher)，agency export agreement，etc. Your company needs to cooperate in providing supporting materials such as purchase contracts and copies of transport documents related to the goods. The agency will first conduct a pre-declaration of tax refund，and submit the formal declaration after passing the verification of the tax system. Please note that the declaration time limit is within 90 days from the date of customs declaration of the goods (extension can be applied for under special circumstances)，and tax refunds cannot be handled if the time limit is exceeded.
Regarding the ownership of the tax refund，according to the agency export agreement，the tax refund should ultimately belong to your company. However，you need to clearly agree on the payment time，method and liability for breach of contract of the tax refund in the agreement to avoid delay or interception by the agency. In case of tax correspondence verification (that is，the tax department verifies the authenticity of the export business)，your company needs to cooperate in providing supporting materials such as goods purchase vouchers，production records (for production-oriented enterprises)，logistics tracks，etc. The agency also needs to assist in providing relevant documents such as customs declaration and foreign exchange receipt documents，and both parties shall jointly bear the burden of proof.
To reduce risks，it is recommended that when choosing an agency，you give priority to enterprises with more than 20 years of experience and good tax refund records such as Zhongshen，and clearly agree on the time nodes of the tax refund process，division of responsibilities and dispute resolution methods in the contract. At the same time，your company needs to follow up the tax refund progress regularly to ensure that the documents are complete and the information is accurate，so as to avoid tax refund failure caused by omission of details.
Linda GaoYears of service：7Customer Rating：5.0
Documentation SupervisorStart a Chat
The customs declaration form is one of the core vouchers for export tax refund, and the accuracy of its information directly affects whether the tax refund can be handled smoothly. Under the agency import and export model, the "operating unit" on the customs declaration form is usually the agency, but the "consignor" needs to fill in the name of your company. You need to ensure that the name, specification, model, quantity and unit of the goods on the customs declaration form are completely consistent with those on the special value-added tax invoice.
If there is any difference, the tax department may refuse the tax refund. In addition, the "trade mode" on the customs declaration form should be "general trade" (if it is other trade modes such as processing with imported materials, the tax refund rules will be different), and the "levy and exemption nature" should be "general taxation". If the information on the customs declaration form is wrong, you need to apply to the customs for modification before the tax refund declaration, so as to avoid delay or failure of tax refund caused by inconsistent documents.
Daniel XuYears of service：10Customer Rating：5.0
Director of Import & Export OperationsStart a Chat
Logistics documents are an important basis to prove the real export of goods, and are also necessary materials for tax refund declaration. When exporting through an agency, you need to ensure that the consignor information on the bill of lading is consistent with that on the customs declaration form (usually the agency), and the consignee information is consistent with the contract. Transport documents (such as ocean bill of lading, air waybill) should indicate the port of shipment, port of destination, mode of transport and description of goods, and should match the information on the customs declaration form.
In addition, if the goods are transported by a third-party logistics provider, you need to keep supporting materials such as transport contracts and freight invoices for the inspection of the tax department. Please note that logistics documents should be obtained in time after the goods are exported and submitted to the agency to avoid delay in tax refund declaration caused by missing documents.
Michael ZhangYears of service：6Customer Rating：5.0
Customs Declaration & Compliance ExpertStart a Chat
Under the agency import and export model, your company needs to issue a special value-added tax invoice to the agency. The name, specification, model, quantity and amount of the goods on the invoice should be completely consistent with those on the customs declaration form, and the "purchaser" of the invoice should be the agency (that is, the operating unit on the customs declaration form). The invoice should be issued within 30 days before or after the customs declaration of the goods.
If the time limit is exceeded, it may affect the tax refund declaration. In addition, if your company is a small-scale taxpayer and cannot issue a special value-added tax invoice, you cannot enjoy the export tax refund, and can only apply for tax exemption. It is recommended that your company try to become a general taxpayer to enjoy the tax refund policy and reduce export costs.
Andy GuoYears of service：3Customer Rating：5.0
Supply Chain Management ExpertStart a Chat
Foreign exchange receipt is one of the preconditions for handling export tax refunds. The agency needs to collect foreign exchange in time after the goods are exported and transfer the foreign exchange funds to your company (in compliance with foreign exchange administration regulations). You need to ensure that the amount of foreign exchange received is basically consistent with the FOB price on the customs declaration form (or the amount of CIF price minus freight and insurance premiums).
If there is a large difference, the tax department may doubt the authenticity of the business. In addition, the agency needs to handle foreign exchange verification in time after receiving foreign exchange (or declare foreign exchange receipt through the foreign exchange monitoring system), and submit the verification form (or foreign exchange receipt voucher) to the tax department. If foreign exchange is not received on time, you need to apply to the tax department for a delayed foreign exchange receipt certificate, otherwise the tax refund cannot be handled.
Evelyn LiYears of service：3Customer Rating：5.0
Cross-border Compliance SupervisorStart a Chat
The agency export agreement should clearly specify the relevant clauses of tax refund to protect the legitimate rights and interests of your company. First, it should be clear that the ownership of the tax refund belongs to your company. Second, agree on the time limit for the agency to handle the tax refund (such as receiving the tax refund within 30 days after the formal declaration). Third, clarify the division of responsibilities of both parties in the tax refund process.
For example, if the tax refund fails due to the agency's wrong document declaration, the agency shall bear the compensation liability; if the tax refund problem is caused by the untrue materials provided by your company, your company shall bear the responsibility. In addition, the agreement should specify the payment method of the tax refund (such as directly transferring to your company's account) and the liability for breach of contract (such as the proportion of liquidated damages for the agency's delayed payment of tax refund). It is recommended to consult professional legal personnel to review the clauses before signing the agreement to avoid potential risks.
Kevin LinYears of service：4Customer Rating：5.0
Trade Solutions ManagerStart a Chat
If the goods are inspected by the customs when exporting, you need to cooperate with the agency to provide relevant materials (such as goods samples, purchase contracts, invoices, etc.) to ensure that the inspection is passed. If the inspection result shows that the goods information is inconsistent with the customs declaration form (such as shortage of quantity, inconsistent specifications), the customs may modify the customs declaration form information or impose a fine.
The modified customs declaration form should be submitted to the agency in time so as to adjust the tax refund declaration data. In addition, if the inspection leads to the delay of the export time of the goods, you need to pay attention to the tax refund declaration time limit (90 days). If the time limit is exceeded, you need to apply to the tax department for an extension to avoid being unable to get the tax refund.
Jason WuYears of service：10Customer Rating：5.0
International Logistics & Supply Chain ManagerStart a Chat
After the tax refund declaration is successful, you need to file the documents as required by the tax department, and the filing period is 10 years from the date of tax refund declaration. The filing materials include: copy of export customs declaration form, copy of special value-added tax invoice, copy of agency export agreement, copy of bill of lading, copy of purchase contract, etc. The filing materials should be properly kept for the subsequent inspection of the tax department.
If you fail to file as required, or the filing materials are incomplete, the tax department may recover the refunded tax and impose a fine. It is recommended that your company establish a special document filing system and assign a special person to be responsible for management to ensure that the materials are complete and accurate.
Victor SunYears of service：5Customer Rating：5.0
Trade Risk Control ManagerStart a Chat
When choosing the agency import and export model, you need to incorporate the tax refund process into the supply chain planning. For example, when selecting suppliers, give priority to enterprises that can issue special value-added tax invoices to ensure tax refund qualifications; when formulating logistics plans, choose reliable logistics service providers to ensure timely and accurate transport documents; when cooperating with the agency, establish a regular communication mechanism to follow up the tax refund progress in time.
In addition, you can shorten the tax refund cycle and improve the capital turnover efficiency by optimizing the supply chain process (such as shortening the goods transport time and accelerating the foreign exchange receipt speed). If your company has a large export business volume, you can consider establishing your own import and export department to handle tax refunds directly and reduce agency costs.