The single transaction limit for cross-border e-commerce retail imported goods is RMB 2,000, and the annual transaction limit for individuals is RMB 20,000. For cross-border e-commerce retail imported goods imported within the limit, the tariff rate is temporarily set at 0%; the exemption of value-added tax and consumption tax at the import stage is cancelled, and 70% of the statutory tax payable is temporarily levied. Single transactions that exceed the single limit and the individual annual limit after accumulation, as well as single indivisible goods with a tax-paid price exceeding the limit of RMB 2,000, are all taxed in full in accordance with the general trade method.
Interpretation: This article is the most core content, including the limit and the tax rate.
In terms of the limit, the single transaction limit was previously RMB 1,000 (RMB 800 for Hong Kong, Macao and Taiwan), and is now increased to RMB 2,000; there was no annual transaction limit for individuals before (reasonable personal use is sufficient), but it is now clearly set at RMB 20,000′. According to the feedback from enterprises, these two limits are too low, and the annual limit is reached by buying a few bags. However, the country opened the channel of cross-border e-commerce mainly to meet the basic consumption needs of the people (such as buying foreign milk powder). As for luxury bags, they are not necessities for ordinary people and are not considered in the cross-border e-commerce retail import. From this point of view, this limit should be understandable.
In terms of tax rates, there are tax rates within the limit and tax rates outside the limit. Within the limit, the tariff is zero, and the value-added tax and consumption tax are levied at 70% of the statutory tax amount: outside the limit, the full amount is taxed in accordance with the general trade method. The specific calculation of the tax amount within the limit is as follows:
(1) Dutiable price = unit price + insurance premium + freight
(2) Duty payable on cross-border e-commerce retail imports = Dutiable price x tariff rate (tariff rate is 0%)
(3) Statutory consumption tax = (dutiable price)/(1-consumption tax rate) x consumption tax rate
(4) Statutory value-added tax = (price + normal consumption tax amount) x value-added tax rate
(5) Consumption tax payable on cross-border e-commerce retail imports = Statutory consumption tax x 0.7
(6) Value-added tax payable on cross-border e-commerce retail imports = Statutory value-added tax x 0 .7
(7) Cross-border e-commerce integrated tax amount = cross-border e-commerce retail import consumption tax + cross-border e-commerce retail import value-added tax
If it is general trade import, the calculation formula is:
(1) Dutiable price = CIF price
(2) Tariff = Dutiable price x Tariff rate
(3) Consumption tax = (Dutiable price + Tariff amount)/(1-Consumption tax rate) x Consumption tax rate
(4) Value-added tax = (Dutiable price + Tariff amount + Normally levied consumption tax amount) x Value-added tax rate
(5) General trade total tax amount = Tariff + Consumption tax + Value-added tax