In the globalized trade environment, international trade is becoming increasingly frequent, which not only helps further expand the scale of the international trade market, but also drives regional economic growth. The role of international transportation in the development of international trade is becoming increasingly important. So, is international transportation tax-free or zero tax rate? How to choose an international transportation service provider?
A. Is international transportation tax-free or zero tax rate?
Whether engaged in international cargo transportation or domestic import and export trade, relevant enterprises are relatively concerned about tax policies between international transportation. Enterprises engaged in international transportation are required to pay taxes in accordance with the tax laws and tax policies. However, according to the documents issued by relevant departments (Finance and Taxation (2013) No. 106), whether transporting domestic goods to China or transporting domestic goods abroad, as long as international transportation services are involved, they can enjoy the preferential policy of zero value-added tax rate.
It can be seen that in the process of international transportation, enterprises do not enjoy tax exemption policies, but they can enjoy zero tax rates. This means that relevant enterprises do not directly process their accounts in a tax exempt manner, but rather need to obtain or issue value-added tax invoices to customers. However, the tax rate on the invoice is zero, and the actual value-added tax that the enterprise needs to pay is also zero.
B. International transport service
Although international transportation services can enjoy a zero tax rate policy for shippers when choosing an international transportation service enterprise, on the one hand, they should consider whether they have the conditions to issue value-added tax zero tax invoices, and on the other hand, they should also pay attention to the capabilities of the transportation enterprise. For the latter, it is recommended to focus on the following aspects: firstly, the logistics coverage of transportation enterprises should be selected as much as possible to meet the freight demand of logistics transportation enterprises; secondly, choosing transportation enterprises with guaranteed timeliness; thirdly, choosing transportation enterprises with low transportation costs and high efficiency; the fourth is to choose transportation enterprises that can solve overseas distribution.
According to the relevant policies currently implemented in China, international transportation is subject to zero tax rate, which means that international transportation is not exempt from tax. In the process of operation, enterprises need to issue value-added tax invoices with zero tax rates. Of course, for enterprises with cargo transportation needs, in addition to paying attention to tax rates, they also need to pay attention to the selection of international transportation enterprises.