New Tax/Tariff Policies for Cross Border E-Commerce

Monday, 21 March 2016 12:13

We leant the news that the tax/tariff policies for the cross border e-commerce will be changed in April. The new policy will cancel the current tax/tariff on baggage mode and change it into “tariff + VAT + excise duty”. Under the current policy, if the tax/tariff is no more than RMB50, the tax is exempted. If the tax is more than RMB50, the rates are applicable to 10%, 20%, 30% and 50% on the different categories. However, the policy will be changed in the following aspects.

1. For most e-commerce business, it is applicable to the “tariff + VAT + excise duty” mode instead of “tax/tariff on baggage”. The limitation for each transaction is RMB2,000 and the annual limitation for one person is RMB20,000. Within the limitation, the tariff is Zero. Beyond the limitation, the tax will be levied according to the ordinary trade. VAT and excise duty are applicable to 70% of the legal tax payable.

2. “Tax/tariff on baggage” is only applicable to the mode of “SET GOODs” (it means the e-commerce operator makes the overseas orders and after the goods arrival, these good are made custom clearance and sent to the consumer directly). But the applicable tax rate will be changed to “15%”, 30% and 60%.

3. Tax exemption (no more than RMB50) will be cancelled.

Dongjin comments: It brings impact to the e-commerce industry, and makes the price higher. But we understand the core for e-commerce is the convenience to purchase the goods from overseas directly. Further, such reformation will make the e-commerce industry more standardized.

If you have any questions, please send the email to me.

Ms. Jojo Hu
TEL: 0086-21-68868335 ext 324 / FAX: 0086-21-68868021

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