Comprehensive analysis of cross-border e-commerce taxation points

Cross-border e-commerce has become an important business model in today’s globalization context, but the tax issues that come with it cannot be ignored. This article will comprehensively analyze the key points of cross-border e-commerce in tax declaration and export tax.

Tax reporting

VAT declaration

Cross-border e-commerce enjoys “zero-rate” treatment in terms of value-added tax, that is, exemption from value-added tax during the export process. However, in order to obtain a tax refund, you must first pay the VAT as required and then file a tax refund declaration. The specific process includes issuing invoices and paying VAT, and then filing tax refund declarations within the specified time. Tax refund declarations are divided into two forms: internal refund (finished products are directly entered into the processing area for re-export) and external refund (goods are directly exported).

Corporate income tax return

According to the Corporate Income Tax Law of the People’s Republic of China, the corporate income tax rate for cross-border e-commerce is 25%. In actual operation, cross-border e-commerce companies need to pay special attention to details such as settlement cycles to avoid unnecessary tax risks.

Export tax

Understanding export taxes is crucial to promoting cross-border e-commerce trade facilitation. The main taxes levied on exported goods in my country include export duties, export tax rebates and value-added tax.

Export tariffs

Export tariffs for exported goods are calculated based on multiple factors such as commodity type, variety, origin and destination country. Certain free trade zones and special economic zones may enjoy lower export tariff preferences.

Export tax rebate

Export tax rebate is a tax refund for the value-added tax, consumption tax, etc. that should be paid by the enterprise during the export of goods. The tax refund ratio is determined by factors such as the type, variety, tax rate, and settlement cycle of exported goods. The state provides relatively generous tax refund policies for cross-border e-commerce.

VAT

The value-added tax in the cross-border e-commerce export link is “zero-rated”, that is, there is no mandatory collection of value-added tax. In order to qualify for tax refund, cross-border e-commerce companies must first pay VAT and submit a tax refund application within the specified time.

Customs taxes and related regulations

Duty-paid price determined

The duty-paid value of imported goods is reviewed and determined by the customs based on the transaction price, including transportation and related costs, insurance premiums, etc. If it cannot be determined based on the transaction price, the customs has the right to use other reasonable methods for valuation.

Types of taxes and fees

The taxes and fees levied by the customs include customs duties, import value-added tax and consumption tax, anti-dumping duties, late payment fees, late declaration fees and deposits, etc.

Supplementary levy and pursuit of levy

If the customs discovers that the tax has been under-levied or omitted, it can make up for it from the taxpayer within one year; if the tax is under-levied or omitted due to taxpayers’ violations, it can make up for it within three years.

Tax deadlines and compulsory measures

Taxpayers must pay the tax within 15 days from the date when the customs fills in the tax payment note. If the tax is overdue, a 1% late payment fee will be charged on a daily basis. If the tax is not paid in full for more than three months, the customs will take compulsory measures.

To sum up, cross-border e-commerce companies must strictly abide by relevant regulations in terms of tax declaration and export tax, pay close attention to policy changes, and reasonably plan tax declaration strategies to reduce risks.