(I) Definition of Scope of Application
According to Notice No. 18 of the Ministry of Finance and Customs [2016], my country will implement the cross-border e-commerce retail (business-to-consumer, i.e. B2C) import tax policy from April 8, 2016. The cross-border e-commerce retail import tax policy applies to the following goods imported from other countries or regions and included in the List of Cross-border E-commerce Retail Import Goods:
(1) All cross-border e-commerce retail import goods that are traded through e-commerce trading platforms connected to the customs and can achieve the comparison of the “three documents” of transaction, payment and logistics electronic information;
(2) Cross-border e-commerce retail import goods that are not traded through e-commerce trading platforms connected to the customs, but express delivery and postal enterprises can uniformly provide electronic information such as transaction, payment and logistics, and promise to bear the corresponding legal responsibilities.
(II) Taxpayers
Individuals who purchase cross-border e-commerce retail import goods are the taxpayers, and e-commerce enterprises, e-commerce trading platform enterprises or logistics enterprises can be the collection and payment obligors.
(III) Calculation method
The calculation method of cross-border e-commerce comprehensive tax is ad valorem tax.
(IV) Dutiable price
The dutiable price of cross-border e-commerce comprehensive tax is the actual transaction price of the e-commerce platform (including the retail price of goods, freight and insurance premiums).
(V) Calculation method and tax rate
For cross-border e-commerce retail imported goods within the prescribed limit, the calculation formula is as follows:
Dutiable price = purchase price x number of pieces
Cross-border e-commerce comprehensive tax amount = dutiable price x cross-border e-commerce comprehensive tax rate
Cross-border e-commerce comprehensive tax rate = [(consumption tax rate + value-added tax rate)/(1 – consumption tax rate)] x 0.7
(VI) Calculation example
A domestic consumer purchased 2 cans of Wyeth milk powder from a cross-border e-commerce platform, and the transaction price of each can was 200 yuan. Knowing that the tax number of the milk powder is 0402.2900, try to calculate the import tax payable for the 2 cans of milk powder.
Duty-paid price = purchase price x number of pieces = 200×2 = 400 (yuan)
After checking the tax rate and converting it, the cross-border e-commerce comprehensive tax rate for milk powder is 11.9%.
Cross-border e-commerce comprehensive tax amount = duty-paid price x cross-border e-commerce comprehensive tax rate
=400×11.9%=47.6 (yuan)
Therefore, the consumer should bear an import tax of 47.6 yuan, 23.8 yuan per can.