Bloomberg reported on the 13th, citing sources, that Chinese tax authorities have requested global shopping platforms such as Amazon.com to submit sales data for Chinese vendors operating on their platforms.
This measure marks the first time authorities have taken action to crack down on tax evasion by Chinese sellers conducting overseas business through online platforms.
According to online sellers across China who requested anonymity, the State Taxation Administration of China has, over the past several months, instructed major global e-commerce companies to submit third-quarter sales data for Chinese sellers.
Amazon began providing this data in mid-October, while Chinese platforms such as Aliexpress, operated by Alibaba Group, as well as Temu and Shein, received the request and submitted their data several weeks before Amazon.
Bloomberg noted that Chinese tax authorities did not raise issues regarding illegal activities by the platforms themselves.
According to sources, the actual sales of online exporters are often much higher than the figures reported to the authorities. With this data, authorities are expected to be able to more accurately assess the true sales of online exporters. If taxes are levied based on the data submitted by the platforms, sellers could face up to 13% value-added tax and corporate tax.
Under Chinese tax law, companies with annual sales exceeding 5 million yuan are required to pay up to 13% value-added tax. While it is possible to obtain exemptions by submitting customs clearance documents or export certificates, most online sellers find it difficult to meet these requirements due to the structure of their businesses.
This measure is expected to deal another blow to Chinese retailers who were already affected when the Donald Trump administration eliminated tax exemptions for small parcels. Bloomberg explained that this reflects China’s urgent need to boost fiscal revenue, rather than support small and medium-sized exporters impacted by the Trump administration’s tariff policies. The Chinese government had already strengthened tax collection on overseas income of its citizens in June.
Several sellers told Bloomberg that after platforms such as Amazon reported accurate sales figures, they immediately received text messages from local tax authorities demanding payment. Two sellers who registered their companies in financially strapped regions said they received urgent calls and visits from local tax officials.
The State Taxation Administration of China, Shein, Temu, and Aliexpress did not respond to Bloomberg’s requests for comment regarding this matter.
An Amazon spokesperson told Bloomberg, "We comply with all applicable laws and regulations in every country where we operate."
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