Two rules that address the same issue from the perspective of two different tax categories

When it comes to commissioned exports, the biggest challenge before 2026 isUnclear subject: Who is responsible for exports, who receives the revenue, and who should file the declaration—each party in the chain has its own take on the matter.

This loophole is now being closed in two directions by two rules:

Value-Added Tax (VAT).Article 48, Paragraph 2 of the “Regulations for the Implementation of the Value-Added Tax Law” stipulates: Where a taxpayer exports goods on a consignment basis, the taxpayer shall comply with the provisions of the competent tax authority of the State Council.Procedures for Exporting Through an Agent, the principal shall, in accordance with regulations, file for and process export tax refunds (or exemptions), apply for VAT exemptions, or pay VAT;If the procedures for entrusting an agent to handle exports have not been completed, the shipper of the exported goods shall declare and pay value-added tax in accordance with regulations.The

Corporate Income Tax.The “Announcement of the State Taxation Administration on Optimizing Matters Related to Corporate Income Tax Advance Payment Filings” (State Taxation Administration Announcement No. 17 of 2025) stipulates that enterprises exporting goods on an agency basis (including through market procurement trade, comprehensive foreign trade services, and other methods) shall, when filing advance payment returns,Simultaneously submit basic information on the actual export consignees and details regarding export amountsThe

If the information is not reported accurately, the enterprise will be deemed to have handled the transaction on a self-operated basis and will be required to pay the corresponding corporate income tax on the export amount. The announcement also addressesActual Exporting PartyDefinition: Identifies the entity that actually manufactures and sells the exported goods.

Why is this line being targeted now?

The reason lies in data sharing. The regulations and supporting documents clearly stipulate that customs authorities shall provide tax authorities with information on export customs declarations for goods, and that tax authorities may establish mechanisms for sharing VAT-related information and coordinating efforts with multiple departments; tax authorities also have the authority to obtain information from relevant entities and individuals regarding logistics and customs clearance, freight forwarding, and fund settlement related to exported goods or services.

this meansExport data from customs declarations, data pushed by the platform, and companies' tax return dataThe three parties will come together. The gray-market practices that once thrived on information asymmetry are now very difficult to conceal.

There have already been cases in practice where a cross-border e-commerce company, having no actual export business of its own, lent its corporate name to others so they could use it to obtain government export subsidies based on those parties’ export data. As customs and internet platform data were transmitted to the tax authorities, the tax authorities determined that the company had failed to file tax returns in accordance with the export data declared to customs and required it to pay back taxes on corporate income tax and value-added tax.

For practices such as “buying invoices” and “inflating export figures,” the risk has shifted from "possibly being investigated" to "being detected with a high degree of probability."

What Each Party—the Principal and the Agent—Must Do

Consignor (Actual Cargo Owner):

• Sign a standard export agency agreement with the agent
• Complete the procedures for authorized export agency in accordance with regulations
• File export tax refund (or exemption) claims on your own and assume the corresponding responsibility.
• Retain complete evidence that proves the company is the actual manufacturer and seller.

Trustee (Agent):

• When filing advance tax returns, submit the basic information of the actual export agent and the export amount at the same time.
• Ensure that the information you submit is accurate to avoid being treated as a self-employed individual due to false reporting.
• Retain the agency agreement and business chain documents for future reference.

Three Common Risk Areas

1. We only signed a foreign trade contract and did not complete the procedures for authorizing an agent to handle exports. A contract is not the same as tax-related authorization procedures; the two sets of documents cannot be used interchangeably.
2. The agent reports the income as if it were from its own operations. This would directly convert export amounts that do not belong to the company into its own taxable income.
3. The client is unable to obtain customs declaration forms and other documents. Subsequent tax refunds and record-keeping have all come to a standstill; it is recommended that the delivery of supporting documents be specified in the agreement.

Practical Recommendations

• Review existing export transactions and verify on a transaction-by-transaction basis whether they are on a consignment basis or for own account.
• Agency Services: Completing Export Agency Procedures and Agreements
• Agents should establish a monthly process for reporting information on the actual exporters they represent; do not wait until the annual tax settlement to submit it retroactively.
• Conduct a comparison of customs export data with declaration data to identify discrepancies early and address them promptly.

If you’re verifying that your materials align with the reporting guidelines, feel free to contact a consultant at Qicaiying (WeChat/Phone: 18676749275), and we’ll walk you through the entire process from start to finish.