China Offers Preferential Tax Treatment to Exports by E-Commerce Retail Enterprises

Posted by Reading Time: 3 minutes

Jan. 13 – China’s Ministry of Finance and the State Administration of Taxation jointly released the “Circular on Tax Policies for Cross-Border E-Commerce Retail Exports (caishui [2013] No.89, hereinafter referred to as ‘Circular’)” on December 30, 2013, which offers value-added tax (VAT) and consumption tax (CT) refund and exemption to exports by e-commerce retail enterprises. For the purpose of the Circular, e-commerce retail export enterprises refer to enterprises that utilize their own or a third-party platform to engage in e-commerce export business.

For the tax refund and exemption to apply, the e-commerce export enterprise should satisfy the following requirements:

  • Be a VAT general taxpayer and obtained the export tax relief qualification by the competent tax authority;
  • Obtained an export declaration form (for export tax refund purposes only) for the goods to be exported. The information on the form should be consistent with the corresponding electronic information;
  • Received the foreign currency for exported goods before the deadline for tax refund (exemption) declaration; and
  • If it is a foreign trade enterprise, obtained the corresponding VAT special invoice and the special CT payment receipt for the exported goods purchased (or the special customs VAT and CT payment receipts for imports). The particulars in these vouchers should match the relevant information in the export declaration form.

For e-commerce export enterprises that fail to satisfy the above requirements, they can enjoy tax exemption if they meet the following conditions:

    • They have completed tax registration;
    • They have obtained the export declaration form issued by the customs; and
    • They have obtained the legal and valid vouchers for its purchase of exported goods.

The Circular came into effect on January 1, 2014.

Dezan Shira & Associates is a specialist foreign direct investment practice, providing corporate establishment, business advisory, tax advisory and compliance, accounting, payroll, due diligence and financial review services to multinationals investing in emerging Asia. Since its establishment in 1992, the firm has grown into one of Asia’s most versatile full-service consultancies with operational offices across China, Hong Kong, India, Singapore and Vietnam as well as liaison offices in Italy and the United States.

For further details or to contact the firm, please email, visit, or download the company brochure.

You can stay up to date with the latest business and investment trends across Asia by subscribing to Asia Briefing’s complimentary update service featuring news, commentary, guides, and multimedia resources.

Related Reading

China-Tax-Guide-2013-thmbThe China Tax Guide: Tax, Accounting and Audit (Sixth Edition)
This edition of the China Tax Guide, updated for 2013, offers a comprehensive overview of the major taxes foreign investors are likely to encounter when establishing or operating a business in China, as well as other tax-relevant obligations. This concise, detailed, yet pragmatic guide is ideal for CFOs, compliance officers and heads of accounting who need to be able to navigate the complex tax and accounting landscape in China in order to effectively manage and strategically plan their China operations.

E-Commerce in China
In this issue of China Briefing Magazine, we cover the current laws pertinent to the e-commerce industry in China, as well as introduce the steps involved in setting up an online shop in the country in order to help provide foreign investors with an overview of the e-commerce landscape in China.

China Clarifies New VAT Exemptions Applied to Cross-Border Services

Shanghai Clarifies Value-Added Tax Exemption for Cross-border Taxable Services

Shanghai FTZ Launches Cross-Border E-Commerce Platform