How to correctly declare VAT for export agency commissions? Which supporting documents must be retained?

I.Export RepresentationIs commission subject to value-added tax (VAT)?

According to the latest "Provisional Regulations on Value-Added Tax Implementation Rules" in 2025, export agency commissions fall underModern Services - Brokerage and Agency ServicesCategories, the following criteria should be noted for judgment:

• Domestic agency services: Regardless of whether the service recipient is located domestically, as long as the place of service provision is within the country, a 6% value-added tax (VAT) is required.
• Cross-border agency services: Eligible for the VAT zero-rate under the tax-exempt circumstances specified in Document Cai Shui [2025] No. 3, and may apply for VAT exemption.
• Special circumstances: If the commission constitutesAdditional charges, it must be consolidated into the export sales amount for calculation.

2. What is the specific process for declaring commission expenses?

The 2025 application process has been streamlined into three steps:

• Step 1: Confirm the nature of the service
  • Obtain the "Cross-Border Taxable Services Tax Exemption Filing Form" from the agent.
  • Verify the service location as stipulated in the service contract.
• Step 2: Calculate the taxable sales amount
  • Domestic services: Commission amount ÷ (1 + 6%) × 6%
  • Cross-border services: A zero tax rate can only be applied after completing the tax exemption filing.
• Step 3: Fill out the declaration form
  • VAT Return Supplementary Information (3), Column 4
  • "List of Service, Real Estate, and Intangible Asset Deduction Items"

III. Which tax documents must be retained?

The new 2025 electronic voucher policy requires enterprises to retain the following materials for at least five years:

• Agency export agreement (original)
  • The original copy of the agency agreement filed with the customs
  • Bank foreign exchange receipt and payment voucher
• Tax documents:
  • VAT Special Invoice (Domestic Services)
  • Proforma Invoice (Cross-border Services)
  • "Cross-Border Service Tax Exemption Filing Receipt"

IV. What are the special treatments for cross-border payment commissions?

Special provisions for payments to overseas agents:

• Withholding and remittance obligation:
  • Non-resident enterprises are required to withhold enterprise income tax at a rate of 10%.
  • Withholding VAT at 6% (except for tax-exempt circumstances).
• Conditions for Tax Exemption Application:
  • The agency service occurs entirely overseas.
  • The recipient consumes services overseas.
  • Complete the electronic filing with the State Taxation Administration.

V. What are the common pitfalls to be aware of when filing?

Based on the 2025 audit case summary, three major risk points are identified:

• Confusing commission types:
  • A company mistakenly treated sales rebates as commissions, resulting in a tax payment supplement of 1.2 million yuan.
  • Criteria for distinction: whether it is directly related to agency services.
• Incorrect application of tax exemption:
  • Cross-border services failed to complete electronic filing, resulting in tax exemption being invalid.
  • Starting from 2025, materials must be submitted through the "Single Window" system.
• Improper voucher management:
  • The new electronic contract requires the preservation of hash value verification documents.
  • Cross-border payments require contracts to be retained in both Chinese and English versions.

6. What are the latest policy changes in 2025?

This year's three key focus areas for revision:

• Validity of Electronic Vouchers:
  • Blockchain-based electronic contracts can replace paper originals.
  • It must comply with the GB/T 38540-2025 certification standard.
• Simplified filing process:
  • The time limit for tax-exempt filing of cross-border services has been shortened to 3 working days.
  • Implement the new mechanism of "one-time filing, nationwide applicability".
• Regulatory requirements upgrade:
  • A special explanation must be attached for commission payments exceeding USD 50,000 per transaction.
  • New regulations on establishing an electronic ledger for commission payments.