Use low-tax regions to set up overseas warehouses. The tax reform of cross-border e-commerce has a greater impact on maternal and child products, personal skin care products and cosmetics with large demand. The tax burden of these products may increase compared with before the tax reform, and the procurement cost will also increase accordingly. Cross-border e-commerce platforms such as Cross-border E-commerce can first make bulk purchases by setting up overseas warehouses in low-tax regions, and then let the goods enter the country through the postal channel, which can reduce the procurement cost of imported goods to a certain extent and reduce the impact of tax reform.
Carry out a small number of tax planning activities. After the reform of the cross-border e-commerce tax system, my country will implement a comprehensive tax system for imported retail goods. Overall, the tax burden of import retail activities involving cross-border e-commerce platforms will increase. However, at the same time, for cross-border e-commerce retail imported goods with a single transaction amount of less than 2,000 yuan and an individual annual transaction amount of less than 20,000 yuan, the tariff rate is temporarily set at 0. Only when the above limit is exceeded will a higher tariff be imposed. Although imported goods are subject to consumption tax at the import stage, different levels of consumption tax rates apply to imported goods of the same type and different scales. Under the comprehensive tax system, the tax burden of cross-border e-commerce platforms can be appropriately reduced. Therefore, cross-border e-commerce platforms such as Cross-border Communication Company can consider splitting large quantities of imported goods into small quantities of imported goods, and implement a small number of tax planning activities within the limit threshold, so as to reduce their own tax burden.
Appropriate use of transfer pricing to reasonably avoid taxes is one of the tax avoidance methods often used by traditional multinational companies. In the context of cross-border e-commerce tax system reform, cross-border e-commerce platforms can also consider learning from it. Transfer pricing is usually carried out between related companies, purchasing from related companies at prices lower than the market or selling to related companies at prices higher than the market, so that the taxpayers engaged in cross-border transactions can achieve certain tax avoidance purposes. Moreover, cross-border e-commerce is more convenient in implementing transfer pricing to avoid taxes due to its own network, virtuality, and digitality. For large cross-border e-commerce platforms such as Cross-border Communication, they can first purchase goods in areas with lower prices, and then rely on the establishment of overseas warehouses to carry out transfer pricing, so as to achieve tax avoidance purposes to a certain extent.
Due to different tax policies in different sovereign countries, cross-border e-commerce platforms often face the problem of double taxation when conducting cross-border e-commerce transactions. In order to avoid this problem, many countries have chosen to adopt the method of signing tax agreements. Although tax treaties do not cover all countries and are mainly bilateral, according to regulations, only residents of the two countries that have signed the agreement can enjoy the tax credits or preferential policies stipulated in the agreement. However, cross-border e-commerce platforms such as Cross-border Link can set up companies in one of the countries that have signed the tax treaty, thereby obtaining certain tax benefits.