The Agency fee Incurred For International Transportation Is Not Allowed To Treat As Part Of Tax Deductible Item For Value Added Tax ("VAT")

The State Administration of Taxation
Issued on 18 January 2005
Gui Zui Han (2005) No. 54

According to the regulation, the agency fee incurred by the VAT original taxpayers for arranging the transportation is not allowed to treat as tax deduction item in calculating the VAT input tax. The rational behind is: that the agency business for international transportation of goods is the middleman who accepts authorization from the consignees, consignors or their agents of import and export goods, handles related operations in the name of their clients or in their own name and collect agency fees or commissions. Thus, the transportation cost does not fall into the scope of tax credit for dutiable goods.

國家稅務總局2005-01-18發文
國稅函〔2005〕54號文件

增值稅一般納稅人支付的國際貨物運輸代理費用，不得作為運輸費用抵扣進項稅額。因為，國際貨物運輸代理業務是國際貨運代理企業作為委託方和承運單位的仲介人，受託辦理國際貨物運輸和相關事宜並收取仲介報酬的業務；所以，不屬於增值稅一般納稅人購進或銷售應稅貨物支付的運輸費用的申報抵扣範圍。