Recently, the tax departments of Inner Mongolia, Jilin, Heilongjiang, Jiangsu, Jiangxi and Qingdao have exposed six cases of tax evasion by netizens and online stores that have been investigated and dealt with according to the law in recent years. The highest underpayment of tax 3,668,900 yuan and a fine of 6,695,800 yuan. Today, Enterprise Caiying focuses on the issues that e-commerce sellers are most concerned about, briefly explains the common tax risk points for e-commerce sellers, and provides 4 major compliance suggestions.

What are the common tax risk points

After analyzing the case, we found that the common means of tax evasion by Netflix and online stores are almost the same, which are nothing more than the following:

Split operations:Register multiple business entities to decentralize income;

False declarations:Some e-commerce companies declare only part of their invoiced income and hide their unbilled income;

Hidden income:Collections are made through personal accounts and are not included in the public accounts;

Swipe and fake:Fictitious transaction data to create false prosperity, while hiding the real sales, some merchants through the brush to enhance the store rankings, masking the real income data;

Fraudulent invoicing:There are two aspects of false invoicing in e-commerce enterprises, one is to reduce the tax burden, through the payment of invoicing fees and other methods to obtain the invoices falsely issued by others, and the other is due to the fact that the actual buyer on the Internet does not need invoices, retaining more input tax credits, and falsely developing invoices for others.

The investigation and handling of these cases shows the determination of the tax authorities to strengthen the tax supervision of e-commerce and live streaming with goods, and warns all e-commerce practitioners: paying taxes in accordance with the law is the obligation of every market entity, and any tax evasion will be severely punished by the law.

Compliance advice for e-commerce sellers

How costly is tax evasion by online stores? In the six cases of tax evasion by online stores mentioned above, the final back taxes (i.e., taxes, late fees, and fines) were several times the amount of tax evasion! To meet the challenges of the new regulations, it is recommended that all e-commerce sellers should improve their compliance systems in the following four areas:

Re-engineer business processes:Ensure the realization of "four streams in one", i.e., the consistency of business flow, contract flow, invoice flow and capital flow. Specific measures include: establishing a dedicated public account to collect payments from platforms and strictly distinguishing between operating accounts and personal accounts; improving the contract management system to ensure that all transactions are supported by compliant agreements; and standardizing the invoice management process;

Optimization of tax returns:Strictly follow the accounting standards and tax law requirements for bookkeeping. Setting up auxiliary books of accounts for special businesses such as swipe orders and adjusting them proactively when filing tax returns. Improve the methods of cost collection and apportionment to ensure that the cost accounting is real and reasonable.

Improve the management of account vouchers:Many of the accounts in the e-commerce industry are informal, looking for the most basic generation of accounts, and many of the generation of accounts do not understand tax, and are unable to plan accounts and tax from a long-term perspective. Operators are advised to set up a perfect voucher management system, including: keeping complete transaction contracts, retaining detailed logistics vouchers and delivery records, properly managing fund settlement vouchers, and organizing consumer communication records and after-sales service information. For large amount or special business, operators can find authoritative financial and tax institutions to do "consulting business accounts", which can not only control the risk, but also optimize the tax for compliance.

Make good use of policy and professional support:Reasonable application of tax incentives, such as VAT exemption for small and micro enterprises and income tax incentives, under the premise of compliance, but need to ensure compliance with policy conditions. For complex tax issues, it is recommended to seek support from professional tax consultants in a timely manner, especially at the initial stage of implementation of the new regulations, as professional advice can help to accurately grasp the compliance requirements and avoid tax risks caused by deviation in understanding.

Warm Tip:Tax supervision has moved from centralized governance to a new stage of digitalization, normalization and penetration. Many tax risks are never sudden, but are caused by the accumulation of long-term neglect of details. In the next decade, tax compliance is by no means an "optional action" for enterprises, but an insurmountable "bottom line of survival". Enterprise Caiying deeply plows into the field of finance and taxation, provides one-stop compliance solutions for enterprises, empowers with professionalism, accompanies with temperature, and helps every enterprise to move forward steadily.