In the field of cross-border e-commerce, whether it is foreign trade or cross-border e-commerce, there are many problems, among which the tax payment issue is of particular concern to sellers. For sellers operating on Tmall International, how to declare value-added tax is an important topic. Let’s take a look at how to declare value-added tax on Tmall International.
On Tmall International, the taxes and fees that cross-border e-commerce needs to pay include import value-added tax, consumption tax and tariffs, and the declaration of value-added tax is usually made at the customs. At present, many compliant cross-border e-commerce platforms, such as Tmall International, will first store imported goods in the bonded area of the import port. When consumers place an order, the goods are directly sent from the bonded area to the hands of consumers. For these goods, a 10% travel tax is usually added.
It should be noted that for non-trade-attributed inbound luggage, postal items, etc., the three taxes of tariff, import value-added tax and consumption tax are combined into one, and the import tax on inbound items is levied together, which is commonly known as the travel tax. The business scope that pays value-added tax includes the sale of goods, the provision of processing or repair and maintenance services, and the import of goods. As long as these conditions are met, value-added tax needs to be paid.
How can Tmall Global’s import tax be exempted?
At present, Tmall Global has cancelled the “tax value discount” collection entrance. Consumers no longer need to collect the tax value discount by themselves, because if the product supports “tax value discount”, the seller has actively used the “tax inclusion tool” to calculate the “tax value discount”.
If the product that the consumer sees is fully tax-inclusive, then the price displayed to the consumer by the merchant after using the “tax inclusion tool” already includes the tax and discount. If the product is partially tax-valued, it means that although the merchant has used the tax inclusion tool to discount the tax value, the merchant cannot bear the tax value completely after the discount, and the consumer needs to bear part of the tax.
However, in some cases, the discount amount may not be equal to the tax amount. For example, some products have multiple discounts or discounts. After using the tax value discount, the discount price may exceed the total price of the product. Since the total discounted price cannot exceed the total price of the goods, the tax value discount amount will be lower than the tax, and consumers still need to pay the corresponding tax.
For some special goods, such as cosmetics, the discount amount may be lower than the tax due to the limited discount amount of the merchant, and consumers also need to pay the corresponding tax. There are also high- and low-tax goods, such as some beauty products, which may not be able to achieve full tax inclusion after using the tax inclusion tool.
It is important to remind you that taxes still need to be submitted to the customs. If Tmall International returns and refunds due to subjective reasons of the buyer, the tax cannot be forced to be borne by the merchant.
In short, when operating on Tmall International, sellers need to fully understand the value-added tax declaration and related tax policies, and reasonably plan business strategies to ensure the smooth development of the business. At the same time, merchants will also actively cooperate with the platform to jointly provide consumers with a better shopping experience and promote the healthy development of the cross-border e-commerce industry.