The State Administration Of Taxation Has Issued New Regulations For Export Electricity Supplier Income Tax To Promote The Development Of Industry Compliance.

A few days ago, the State Administration of Taxation issued the notice on the issue of the verification of the export tax of retail enterprises in the cross border electricity supplier comprehensive trial area, and issued a method for the verification of the export income tax of cross-border export enterprises. The taxable income rate was determined in accordance with 4% in January 1, 2020.


The announcement indicates that the conditions for cross-border e-commerce enterprises to meet the approved levy include registration in the comprehensive examination area, and registration of the date, name, unit of measurement, quantity, unit price and amount of the export goods on the cross border e-commerce online comprehensive service platform. The export goods will go through the declaration procedures for e-commerce export through the Customs at the location of the comprehensive test area, and the value-added tax and consumption tax of the exported goods will enjoy the tax exemption policy without obtaining valid certificate of purchase.


This is not the first time for cross-border electricity providers to adjust taxes. In September 2018, the four departments of the Ministry of finance, the General Administration of Taxation, the Ministry of Commerce and the General Administration of Customs jointly issued a circular on the tax policy of retail export commodities in the comprehensive e-zone for cross border e-commerce. The document stipulates that goods exported by Electronic Commerce export enterprises in the comprehensive examination area shall not obtain valid receipts, and that the value-added tax and consumption tax exemption policy should be tried on the following conditions.


In response, Zhang Zhouping, director and senior analyst of B2B, director of the electronic commerce research center, and the director of the cross-border electric business department, said that the adjustment of the cross-border electricity supplier income tax policy can help cross-border electricity providers to move towards a healthy development path, improve the cross-border electricity supplier system and promote the development of cross-border electricity supplier industry.


"For cross-border retail business, the tax burden and exchange rate changes are often two important factors affecting the operation of enterprises. The State Council has constantly optimized and improved the cross-border electricity supplier tax policy, to a certain extent, solved the problem of VAT left over, alleviated the operating cost pressure of cross-border e-commerce sellers' exports, and at the same time, set up a large number of cross border electricity supplier comprehensive test zones in many first and second tier cities, and encouraged more traditional retail businesses to go to the "product to sea" road. Zhang Zhouping said.


CEO Zhu Qiucheng, a special research fellow of the electronic commerce research center, and Ningbo New Oriental Industrial and Trade Co., Ltd., said that the State Administration of Taxation has issued a cross border export income tax collection method. It is a measure for the state to standardize the cross-border electricity suppliers, and is also part of the opportunities and dividends of cross-border electric business enterprises, so as to promote the standardization and tax compliance of cross-border electricity providers.


According to the network society database, the scale of cross-border e-commerce transactions in China reached 9 trillion yuan (RMB, same below) in 2018, an increase of 11.6% over the same period last year. The scale of export cross-border e-commerce transactions was 7 trillion and 100 billion yuan, an increase of 12.7% over the same period last year. In 2018, the scale of China's export cross-border e-commerce network retail market was 1 trillion and 400 billion yuan, an increase of 16.6% over the same period last year. In 2018, the growth of the export e-commerce network retail market was larger than that of the overall export and export B2B growth, and maintained rapid growth.