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International sellers on Taobao must navigate the complex landscape of Chinese tax laws to ensure full compliance and maintain a reputable presence in the market. This guide offers insights into tax obligations and compliance strategies for global merchants.
Understanding China’s Tax Framework
Familiarize yourself with the fundamentals of China’s tax system, including VAT, import duties, and income tax relevant to e-commerce activities.
Registration with Tax Authorities
Register your business with Chinese tax authorities if required, to obtain necessary tax identification numbers and comply with local regulations.
VAT (Value-Added Tax) Compliance
Learn about VAT obligations for international sellers, including registration, invoicing, and reporting requirements.
Import and Export Duties
Understand the customs duties and taxes associated with importing goods into China and exporting to other countries, if applicable.
Withholding Tax on Income
Explore the withholding tax implications for international sellers deriving income from sales on Taobao.
Tax Invoices and Record Keeping
Issue tax-compliant invoices for sales and maintain accurate financial records for tax reporting purposes.
Utilizing Tax Agents or Advisors
Consider engaging tax agents or advisors with expertise in Chinese tax law to assist with compliance and strategic tax planning.
Staying Updated with Tax Law Changes
Keep abreast of changes in tax laws and regulations that may affect your business operations on Taobao.
Electronic Tax Payment Systems
Utilize electronic tax payment systems for efficient and timely settlement of tax liabilities.
Audit Preparedness
Prepare for tax audits by maintaining proper documentation and ensuring all tax reporting is accurate and complete.
Tax Treaties and Double Taxation Avoidance
Explore any tax treaties between China and your country of origin that may provide relief from double taxation.
PLTFRM is an international brand consulting agency that works with companies such as Red, Tiktok, Tmall, Baidu and other well-known Chinese internet e-commerce platforms. We have been working with Chile Cherries for many years, reaching Chinese consumers in depth through different platforms and realizing that Chile Cherries exports in China account for 97% of the total exports in Asia.
