A seller in Shenzhen who deals in 3C products received a red alert from the system this year. The reason is straightforward: he had consistently recorded his accounts based on the net withdrawal amount from the platform, while the platform reported the total order value to the tax authorities—resulting in a discrepancy of several million between the two figures.

He had no intent to evade taxes; he was simply continuing a practice he had followed for five years. However, in the tax administration environment of 2026, this discrepancy itself serves as a clue.

The biggest change in cross-border e-commerce in 2026 will be the phasing out of the fixed-rate taxation method and the introduction of the audited-accounts taxation method. This isn’t simply tightening the rules; it’s a shift to a new underlying logic. Today, I’ll explain in detail how to restate these accounts.

01

How is the fixed-rate taxation system phased out?

Let's get the timeline straight first—a lot of people still think this is just a rumor.

On January 1, 2026, the Value-Added Tax Law officially took effect, and ”data-driven taxation” evolved from a slogan into an enforcement standard.

According to the relevant announcements issued by the Ministry of Finance and the State Taxation Administration in 2026, enterprises with sound financial systems must, in principle, transition to the audited-accounts taxation method and report corporate income tax based on their actual profits. While the assessed-taxation method has not been completely phased out, the eligibility criteria have been significantly tightened, and the scope for its application is narrowing.

Another, even stricter measure was implemented at the same time:The "overseas warehouse" model is uniformly subject to tax assessment based on audited accounts.There are no exceptions for sellers of the 9810.

Looking back one year, Announcement No. 15 of 2025 issued by the State Taxation Administration required domestic and foreign internet platform companies to report sellers’ tax-related information on a quarterly basis. Platforms such as Amazon, TikTok Shop, Temu, and AliExpress will begin submitting this information in stages starting in October 2025, including total order value, refunds, platform fees, and details of payment accounts.

It is the combination of these two factors that has led to the current situation: on the one hand, you are required to file your taxes based on accurate records; on the other hand, the tax authorities already have the raw data provided by the platform.

The good news is that, under current policy, back taxes dating back to 2025 or earlier can be settled through a fixed-rate assessment. This is the last opportunity to do so.

02

What kind of accounting records are required for audit-based taxation?

Many business owners say, ”I have the books,” but when you take a look, it turns out to be just a ”record of cash withdrawals.” These are two entirely different things.

The first thing to change is the definition of revenue.Taxable income is the total order amount, not the net amount withdrawn. Platform commissions, advertising fees, storage fees, and refunds are all costs or offsets that are processed according to their nature after the total order amount has been confirmed; they cannot be directly deducted from revenue.

If you adjust this entry, your reported revenue will increase significantly. Many sellers are reluctant to make this change because they fear that as their revenue rises, so will their tax burden. However, if you fully adjust the cost side at the same time, the actual tax base won’t spiral out of control—the problem lies precisely in adjusting only the revenue without adjusting the costs accordingly.

The second area that needs to be addressed is cost allocation.Create ledgers for each item: procurement, first-leg logistics, platform fees, overseas warehouse storage, advertising, and labor. Items lacking supporting documentation cannot be deducted for tax purposes and will directly increase profits.

The third change to be made is the implementation of independent accounting for each store.For businesses with multiple stores, each store must maintain its own set of books, and a consolidated tax return must be filed at the end of the month. This isn’t just a matter of accounting practice—tax authorities will identify affiliated stores by tracing IP addresses, warehouse locations, cash flows, and the actual controllers, and consolidated tax calculation is a strict requirement.

There is a critical threshold to watch out for: if total revenue exceeds 5 million over 12 consecutive months, you are required to register as a general taxpayer that same month—there is no grace period. Anyone attempting to circumvent this requirement by splitting up sales through multiple sole proprietorships or shell companies will, upon verification, be required to pay back taxes retroactively for the past three years.

If you’re facing a similar situation—you’ve consistently recorded transactions based on the net withdrawal amount and now aren’t sure whether to proactively adjust your income classification—feel free to scan the QR code to contact Qicaiying’s online customer service (WeChat/Phone: 18620388671). We’ll help you sort out this entire process from start to finish.

03

Foreign documents can finally be posted to the books

This is the most easily overlooked piece of good news in 2026, and it’s more significant than many people realize.

According to the guidelines set forth in the 2026 announcement by the Ministry of Finance and the State Taxation Administration, provided the conditions are met,Overseas invoices (Invoice/Receipt), platform fee statements, and bills from overseas logistics providers can be used as supporting documents for tax-deductible expenses.

The breakdown of platform fees specifically includes advertising fees, commissions, and warehousing fees—expenses that used to be a murky mess. Business owners knew these expenses were being incurred, but since they couldn’t provide “Chinese-style” invoices, accountants were reluctant to record them. As a result, these expenses were either left on the books or excluded from deductions, artificially inflating reported profits.

Now that this process is in place, the four words ”meet the requirements” must be upheld: the entity name on the documentation must match the entity you use for tax filing; the currency and exchange rate used for conversion must be consistent; and the payment details must match the settlement statements from the bank or platform.

In practice, we recommend exporting the expense breakdown report from the platform’s backend on a monthly basis and filing it along with the settlement report. Don’t wait until the month before the annual tax settlement to export it—there is a time limit for downloading historical data from the platform’s backend.

Once you switch to the audited assessment method, whether you can fully deduct costs directly determines whether your tax burden will be 8% or 25%. The policy regarding overseas documentation is designed to change the cost deduction status from ”cannot be deducted” to ”can be deducted.”

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04

9810 and Duty-Free Returns: Two Real Financial Benefits

While regulatory scrutiny is tightening, new avenues for easy access to funds are also opening up—it would be a waste not to take advantage of this money.

”9810 Overseas Warehouses” Have Fully Implemented the "Tax Refund Upon Departure" Policy.Once goods have cleared customs for export, sellers can apply for a preliminary tax refund, which will be adjusted later based on actual sales. Previously, refunds were only available after the goods were sold; now, sellers can receive a refund as soon as the goods leave the country. For overseas warehouse sellers dealing with excess inventory, this means a cash flow improvement of more than a month.

This is contingent on having a complete overseas warehouse registration, accurate customs declaration data, and proper accounting practices. If even one of these three conditions is missing, applying for a tax refund is like setting a trap for yourself.

The duty-free return policy has been extended through the end of 2027.Goods that are reimported in their original condition within six months of export due to slow sales or returns are exempt from import duties, import value-added tax, and excise tax. Previously, returned goods were subject to a 15.1% to 20.1% tax on their value. With this cost eliminated, the cost of failed product testing has been significantly reduced.

Nationwide rollout of cross-customs-zone returns.Retail export goods under the 9610 model can be returned at any eligible port of entry nationwide, without having to be returned to the original port of export. This directly reduces reverse logistics costs by one tier.

Another important point to note is that customs codes must not be mixed: overseas warehouses must use code 9810; if you mix it with the general trade code 0110, you won’t be able to claim a tax refund. B2B orders must use code 9710. If you select the wrong code, all the documentation you’ve prepared will be for nothing.

05

How Can I Safely Settle Old Debts?

This is the thing that offers the greatest value in terms of time this year, and it’s also the thing that’s easiest to put off.

For cases involving underreported income, missing documents, or non-compliant customs declarations from 2025 and earlier, it is still possible to rectify these issues based on the tax authorities’ assessment criteria. Once the grace period ends, the tax authorities will conduct mandatory audits; all costs without supporting invoices will be added to profits, and with late payment penalties and fines piling up, it’s no exaggeration to say that the total cost could double.

We recommend the following order for the final review: First, consolidate the four sets of data—platform reports, customs declarations, bank foreign exchange settlement statements, and tax return forms—from the past three years into a single spreadsheet for reconciliation. After identifying any discrepancies, determine whether they result from differences in reporting criteria or actual omissions. For discrepancies due to reporting criteria, provide an explanation; for actual omissions, file an amended return through the Electronic Tax Bureau.

Proactive corrections and reactive rectifications lead to completely different outcomes.By proactively conducting a self-inspection and filing the necessary reports, you may be eligible for a waiver of penalties for a first-time violation or a reduction in fines; if you wait until you receive a tax notice before taking action, you will have virtually no room to take advantage of these policies.

It’s worth reiterating a few key points: Receipts from private accounts are treated as concealed income; companies must make up for the shortfall in VAT (13%) and corporate income tax (25%), pay fines ranging from 0.5 to 5 times the amount owed, and pay a daily late payment penalty of 0.05‰; exports under a “purchase-and-resale” arrangement are treated as domestic sales, and the full amount must be made up (13%); Businesses that consistently file zero tax returns are priority targets for tax audits.

The logic behind tax administration in 2026 can actually be summed up in one sentence: as long as the three flows—goods, money, and accounts—match up, you’re in the clear. The phasing out of assessed taxation isn’t scary; what’s scary is when your accounting is still stuck in the era of cash withdrawal records.

If you’re facing a similar situation—wanting to clear up old accounts from 2025 and earlier before the window period closes—feel free to scan the QR code to contact Qicaiying’s online customer service (WeChat/Phone: 18620388671). We’ll help you sort out the entire process from start to finish.

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