Standards for Declared Value, Payment Amount, and Tax Base when Exporting Goods with Free Samples

Question

1. When exporting goods along with free samples, I am wondering how to fill out field 46 (Total Declared Value) and field 49 (Payment Amount) on the export declaration. 2. In this case, how should the value of the free samples be expressed on the invoice? 3. If fields 46 and 49 are filled out differently, which amount should be used as the tax base for the VAT return?

tflow_expert · Accepted Answer

When reporting VAT, zero-rated sales should be based on item 49 (Payment Amount) on the Export Declaration. The payment amount is the actual amount the exporter receives from the importer, which is identical to the payment amount on the invoice. Item 46 (Total Declared Value - FOB) is the standard amount used to record export performance under the Customs Act; it always follows the FOB basis and is a customs-related figure, meaning it is unrelated to the amount reported for VAT. For all other matters, please seek assistance from a customs broker.

Standards for Declared Value, Payment Amount, and Tax Base when Exporting Goods with Free Samples

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