As a Chinese citizen, as long as your income reaches the tax standard, you need to pay taxes. This is your obligation and responsibility as a Chinese citizen. Tax evasion is illegal. So, let’s learn about the taxes withheld by cross-border e-commerce platforms!
1. How do cross-border e-commerce platforms withhold taxes?
The tax obligations of individual sellers mainly include value-added tax and personal income tax. As long as you meet the tax standards, you can declare yourself within the specified time.
2. What taxes are withheld by cross-border e-commerce platforms?
1. Tariffs.
As an export cross-border e-commerce company, you need to sell to different markets. An inevitable tax is tariff. Therefore, cross-border e-commerce companies should pay close attention to the specific policies and import policies of each country when selling overseas. Tariff changes, EU countries have formulated a common trade policy, that is, EU member states uniformly implement common tariffs and trade policies towards third countries. In other words, no matter which country or region imports to EU countries, the import tariffs are the same. U.S. import tariffs stipulate that goods from third-party countries and regions can be levied on an ad valorem (percentage of the value of the goods) or temporary (unit: US dollars/cent) basis. In addition, Sino-US trade negotiations are also constantly affecting the import and export tariff rates.
2. Import value-added tax.
It is different from the general value-added tax, which levies a tax on the value-added amount of production, wholesale and retail. The import value-added tax is a type of value-added tax levied on the value-added amount of the import link. The seller pays the import value-added tax to the authorities. For sales after tax, the actual tax paid can be deducted from the import value-added tax of the goods.
3. Business tax.
This is a tax that needs to be paid after the product is sold. It is a turnover tax levied based on the value-added amount generated during the circulation of goods.
4. Income tax.
Corporate income tax is levied based on the actual operating profits of the enterprise, multiplied by different income tax rates.
The above introduction is what taxes withheld by cross-border e-commerce platforms include. In recent years, cross-border e-commerce has continued to gain popularity. However, unlike domestic e-commerce, considering the complexity of overseas taxation, Sexuality and professionalism, seller companies do not understand overseas taxation, which may lead to under-taxation, late taxation, or over-taxation, which actually increases unnecessary taxation costs. Taxation is one of the key factors affecting profits.