In recent years, cross-border e-commerce, as a new mode of foreign trade, has been developing rapidly under the support of national policies, and has increasingly grown into a new driving force for the growth of the country’s foreign trade.
The Ministry of Finance, the State Administration of Taxation and other departments have also issued a series of tax policies and facilitation measures for cross-border e-commerce retail export goods. These include value-added tax (VAT) and consumption tax refunds (exemptions), tax exemptions for exports and “tax exemptions without invoices” in cross-border e-commerce comprehensive pilot zones.
VAT and consumption tax refund (exemption) policy
E-commerce export enterprises subject to export tax refund (exemption) and tax exemption policies refer to e-commerce export enterprises that build their own cross-border e-commerce sales platforms and enterprises that utilize third-party cross-border e-commerce platforms to carry out e-commerce exports.
E-commerce export enterprises shall be subject to the VAT and consumption tax refund (exemption) policy if they export goods (except for the goods which the Ministry of Finance and the State Administration of Taxation explicitly exclude from the export tax refund (exemption) or tax exemption), and at the same time meet the following conditions:
01 The e-commerce export enterprise is a general VAT taxpayer and has filed with the competent tax authorities for export tax refund (exemption);
02 The exported goods obtain the electronic information of customs declaration of exported goods;
03 The exported goods are collected within the closing date of the tax refund (exemption) declaration period;
04 If the e-commerce export enterprise is a foreign trade enterprise, the purchased export goods have obtained the corresponding special VAT invoice, special payment certificate for consumption tax (split slip) or special payment certificate for VAT and consumption tax for customs imports, and the relevant contents of the above vouchers match with the relevant contents of the customs declaration for export goods.
Policy Basis
Articles 1, 3-6 of the Circular of the Ministry of Finance and the State Administration of Taxation on Taxation Policies for Cross-border E-commerce Retail Exports (Cai Shui [2013] No. 96)
General Tax Exemption Policy on Value-added Tax and Consumption Tax
If an e-commerce export enterprise exports goods and does not meet the conditions stipulated in the VAT and consumption tax refund (exemption) policy, but at the same time meets the following conditions, it shall be subject to the VAT and consumption tax exemption policy:
01 The e-commerce export enterprise has applied for tax registration;
02 The exported goods have obtained the customs declaration for exported goods issued by the Customs;
03 The purchased exported goods have obtained legal and valid purchase certificates.
Policy Basis
Circular of the Ministry of Finance and the State Administration of Taxation on Taxation Policies for Cross-border E-commerce Retail Exports (Cai Shui [2013] No. 96), Articles 2-6
Comprehensive Pilot Zone for Cross-border E-commerce
Policy of “Tax Exemption without Invoice” for Retail Exports
For cross-border e-commerce retail export goods within the comprehensive pilot zone for cross-border e-commerce, the VAT and consumption tax exemption policy shall be implemented on a trial basis, if no valid proof of purchase has been obtained and the following conditions are met:
01 The e-commerce export enterprise is registered in the comprehensive pilot zone and registers the date of export, the name of the goods, the unit of measurement, the quantity, the unit price and the amount on the online comprehensive service platform for cross-border e-commerce in the place of registration;
02 The exported goods go through the e-commerce export declaration procedures through the customs office of the location of the comprehensive pilot zone;
03 The exported goods do not belong to the goods for which the Ministry of Finance and the State Administration of Taxation have explicitly canceled the export tax rebate (exemption) according to the decision of the State Council.
Policy Basis
Circular of the Ministry of Finance and the State Administration of Taxation of the Ministry of Commerce and the General Administration of Customs on Taxation Policies for Retail Exports of Goods in Comprehensive Pilot Zones for Cross-border E-commerce (Cai Shui [2018] No. 103)
Policy on Approved Collection of Enterprise Income Tax for Cross-border E-commerce Enterprises in the Comprehensive Pilot Zone for Cross-border E-commerce
Cross-border e-commerce enterprises in the comprehensive pilot zone that also meet the following conditions shall implement the approved collection of enterprise income tax on a trial basis:
01 Registered in the comprehensive pilot zone and registered the date, name, unit of measurement, quantity, unit price and amount of exported goods in the online comprehensive service platform for cross-border e-commerce in the place of registration;
02 The exported goods go through the e-commerce export declaration procedures through the Customs of the place where the comprehensive test area is located;
03 The exported goods do not obtain valid proof of purchase, and their value-added tax and consumption tax enjoy tax exemption policy.
The cross-border e-commerce enterprises in the comprehensive test zone approved for collection shall accurately account for the total amount of income and adopt the taxable income rate method to approve the collection of enterprise income tax. The taxable income rate is uniformly determined at 4%. Cross-border e-commerce enterprises in the comprehensive test area with authorized levy shall enjoy the preferential policies on income tax for small and micro-profit enterprises if they meet the conditions of the preferential policies for small and micro-profit enterprises; and they shall enjoy the preferential policies on tax-exempted income if the income they have obtained belongs to tax-exempted income as stipulated in the Enterprise Income Tax Law.
Policy Basis
Announcement of the State Administration of Taxation on Issues Related to the Approved Collection of Enterprise Income Tax for Retail Exports in Comprehensive Pilot Zones for Cross-border Electronic Commerce (No. 36 of 2019)
Source: State Administration of Taxation
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