Is it necessary to levy taxes on free export samples that are not subject to foreign exchange collection as if they were domestic sales?

Are you confused about whether export free samples need to be taxed as domestic sales when dealing with them? Facing complex tax and export management regulations, how can enterprises ensure compliance under the tax exemption policy? Understanding these key points can make your export business more relaxed and worry-free.

When dealing with export free samples and not...A complete export agency agreement should be attached with:enterprises need to pay attention to the following key points to ensure compliance with relevant tax and export management regulations.

VAT Treatment of Export Free Samples:According to Announcement No. 12 of the State Taxation Administration in 2013 and related regulations, samples and exhibits that are exported but not included in the export sales revenue are exempt from VAT. This means that in the case of free samples for export that are not collected and not included in the export revenue, enterprises can enjoy the VAT exemption policy and do not need to be taxed as domestic sales.

Requirements for Tax Exemption Declaration:Even if these samples are free and not collected, enterprises still need to declare according to the tax exemption policy.

Enterprises need to prepare the following materials:

(1) Export cargo declaration form (if the... copy cannot be provided, other copies can be provided as a substitute).Export Drawback(2) Export invoice to prove that the goods have been declared for export.
(2) Export invoice to prove that the goods have been declared for export.
(3) If it involves consignment for export, the agents export goods certificate of the entrusted party also needs to be provided.
(4) For goods purchased and directly exported, relevant purchase vouchers (such as special VAT invoices, ordinary invoices, etc.) also need to be provided.

Declaration for tax - free exports:Enterprises should handle tax - free declarations with the competent tax authorities in accordance with regulations. Although this process is exempt from VAT, it still needs to be declared in accordance with the Details of Tax - Free Export Goods and Services. And all relevant vouchers should be bound in sequence and retained for future inspection.

Retain materials for future reference:Important documents and supporting materials, including customs declarations, export invoices, purchase vouchers, etc., should be bound in volumes according to the export date and retained within the enterprise for spot checks or inspections by the tax authorities. Although enterprises do not need to submit the Details of Tax - Free Export Goods and Services and its electronic data to the tax authorities, these materials must be properly kept to ensure that they can be smoothly provided to the tax department for review in the future.

When dealing with the export of free samples without receiving foreign exchange, export samples that meet the tax - free conditions do not need to be taxed as domestic sales. Enterprises only need to handle VAT tax - free declarations in accordance with regulations and ensure the completeness and compliance of relevant materials. Keep these materials properly to respond to possible reviews or inspections by the tax department and ensure the legality and compliance of export activities.

If you still have any questions or need further support during the operation,ZhongShen International TradeWe will provide professional help to you at any time to make your business operations smoother.