#China : New taxes incoming on cross-border

The Ministry of Finance, the State Administration of taxation and the General Administration decided this last april to implement new tax on cross-border e-commerce.

This new tax took effect on the 8th of april and it concerned business and traditional retailers in order to improve the market and create a fair competition mecanism. This is a collective tax that took effect on personal postal articles and it also include imported products and consumption goods.

Does it have an impact on imported goods ? Indeed, all the imported good which has a value under 1 000 yuan, the tax rate would be around 10% and all product with an estimated value under 50 yuan are just exempt of customs tax. This details has been treated by Wang Wri, The Director of Institute of Market Economy of Development Research Center of the State Council.

ecommerce crossborder China

A new tax against an unfair process

The trend is more and more people are asking for foreign products so many agents take advantage of the personal postal which had taxes advantages. They used different techniques and methodes in order to avoid taxes by repackaging and mailing product in different ways. This new tax is established because the system the personal postal was « unfair » for the government which compared the value of this system and the income return for the state. And in fact, the overseas market represented hundreds of billions of yuan which were made, and the tax for the personal postal was only around 1.3 billion of yuan. So, an enormous loss for the government if the tax revenu and the overseas consumtions are compared.

In consequence, this new taxe appliance has been created to thwart a system which was unfair for the State point of view. So it has been decided to limit the value of transaction at 20 000 yuans per year and per person. Also, only a maximum of 2 000 yuans is now allow per single transfer for the cross-border retail.

See more :

Taxes’ shifting regarding e-commerce in China !

Wechat reveals amazing opportunitiers in Chinese e-commerce

UK retailers, non interest for Chinese customers

E-Commerce China Agency 

crossborder ecommerce Agency