Cross-border e-commerce refers to international commercial activities in which trading entities from different countries use e-commerce platforms to complete transactions and deliver goods through cross-border logistics. So, let’s take a look at how cross-border e-commerce companies pay taxes?
1. What taxes do cross-border e-commerce companies need to pay?
1. Import value-added tax: This is It refers to the value-added tax collected in the import process, which is different from the general production, wholesale, retail and other value-added taxes, but it can be offset and the corresponding value-added tax difference can be deducted.
2. Import tariff: This is a tariff levied by a country’s customs on imported goods and goods. Cross-border e-commerce companies need to pay import duties before selling goods to the target country. The tax rate may vary between 0% and 20%. If the company has a tax plan, it is recommended to purchase goods in countries that have signed free trade agreements.
3. Income tax: Income tax is a tax levied on legal persons, natural persons and other economic organizations, and is levied on various incomes collected within a certain period of time. Generally speaking, income tax is divided into two types: corporate income tax and personal income tax. Pay corresponding income tax according to the nature of the entity (individual or enterprise).
4. Turnover tax/value-added tax (GST): Value-added tax is a tax that needs to be paid after the sale of goods. In the tax calculation principle, value-added tax is imposed on different parts of the production, circulation, and labor services of goods. The added value will form a high additional tax, that is, consumers need to bear the added value tax without added value tax.
2. How do cross-border e-commerce companies pay taxes?
1.
Import duties: refers to the taxes that need to be paid on imported goods passing through a country’s customs territory. Calculation methods include ad valorem levy, specific levy, compound levy and other methods. There are also some special commodities that may require special calculation methods.
2. Personal postal tax: refers to the import tax on luggage and postal items.
3. Value-added tax: my country’s basic value-added tax rate is 17%. For some important materials related to the national economy and people’s livelihood, the value-added tax rate is 13%.
4.
Consumption tax: Currently, the state only levies consumption tax on four categories of products. The first is those consumer goods that excessive consumption will cause harm to health, such as tobacco and alcohol; the second is luxury goods; the third is high energy consumption products; the fourth is non-renewable petroleum consumer goods.
The above is the relevant knowledge on how cross-border e-commerce companies pay taxes. In e-commerce operations, it is very necessary to calculate data carefully, and it is also very important to plan and estimate properly and pay taxes reasonably. The types of taxes that cross-border e-commerce needs to pay in tax collection are very common. But in addition to these taxes, there may be other taxes that vary from country to country and on specific products. For those sellers who are not familiar with foreign finance and taxation knowledge, it is recommended to learn more knowledge. Unlike e-commerce in the domestic market, due to the complexity and professionalism of overseas finance and taxation, sellers who are not familiar with overseas finance and taxation may lead to insufficient or delayed tax payment, inflated tax costs and other problems. Therefore, companies should understand relevant regulations and consult professionals to avoid unnecessary troubles caused by tax issues.