Tax-exclusive Price

Tax-exclusive Price refers to the price of goods or services that does not include any taxes, such as VAT, tariffs, consumption tax, etc. In foreign trade, it is commonly used in quotations, contracts, and invoices to clarify the tax responsibilities of both buyers and sellers. Usage scenarios include: quotations under trade terms such as FOB, CIF, or when the buyer is responsible for import taxes. Precautions: specific tax types (e.g., VAT, GST) must be clarified, and the tax rate and tax base should be stated to avoid subsequent disputes. Unlike Tax-inclusive Price, under a tax-exclusive price the buyer must pay taxes additionally; unlike Ex-works, a tax-exclusive price may still include other costs (such as packaging, inland freight). In foreign trade negotiations, using tax-exclusive prices helps clearly divide costs, but it is necessary to confirm the other country's tax policies to prevent double taxation or tax evasion risks.