A Guide to China e-commerce Tax Rates: positive list, tax rates on cross-border & direct-to-consumers, and annual limit

A Guide to China e-commerce Tax

On April 8th, 2016, Chinese government has published a new tax policy governing the cross-border ecommerce business. However, the policy has been partially postponed in May due to pressure from China ecommerce businesses. Read the CNBC article on full details: China postpones cross-border sales tax.

But, there are several key changes to tax policies that are still in effective since then:

  • Negative List vs. Positive List
  • Cross-Border vs. Direct-To-Consumer Tax

Negative List vs. Positive List

 Negative List –  it’s a blacklist that names product categories and circumstances in which foreign companies are barred or limited. Anything that is not included on the list is fully open for foreign companies, who can obtain pre-entry national treatment and bring the products to China.

 Positive List –  Chinese government has published a positive list, which lists HS codes for 1142 product categories. The HS code is used to determine the tax rate for imported products. Email us at info@marcetable.com with subject line Positive List to request the full file.

Cross-Border vs. Direct-To-Consumer Tax

Why do you need the Positive List? You will use it to determine the cross-border tax rates.

For products entering China, there are two types of tax rates: cross-border tax rates and direct-to-consumer tax rate.

A Guide to China e-commerce TaxIn conclusion, tax rate is a significant factor that could reduce your overall profits. It’s very important to know the HS code for your product category in launching your cross-border ecommerce business. If needed, you can email info@marcetable.com with subjectline Positive List to request the full list.



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