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China avoids ecommerce slowdown stepping back from cross-border tax regulations

Wednesday 1 June 2016 11:59 CET | News

Chinese authorities have stepped back from their cross-border sales tax programme to avoid a slowdown on ecommerce.

Chinas General Administration of Customs (GACC) announced a one-year postponement for some of the new tax policies in Tianjin, Shanghai, Hangzhou, Ningbo, Zhengzhou, Guangzhou, Shenzhen, Chongqing, Fuzhou and Pingtan, cnbc.com reports.

Data for the first week after the new rules took effect showed a more than 60% fall of cross-border ecommerce orders for Shenzhen, Zhengzhou, Ningbo and Hangzhou. For example, 3% of the goods in Zhengzhou were able to meet the new positive list ofthe government.

Purchases exceeding USD 307 (CNY 2.000) for a single transaction in cross-border retail and USD 3.075 (CNY 20.000) for yearly transactions per person are now levied a full general trade tax. In 2014, cross-border ecommerce and overseas purchases reached hundreds of billions of yuan, while the personal postal article tax generated just CNY 1.3 billion for the government.


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Keywords: China, ecommerce, crossborder sales, tax programme, regulations, positive list
Categories: Payments & Commerce
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