Recently, a cross-border e-commerce seller in Guangdong received a notice from the tax department that due to the serious discrepancy between the declared revenue on the platform and the declared VAT data, he was required to pay back taxes and late fees totaling nearlyTwo million dollars.. This general taxpayer enterprise was unable to provide compliance certificates for its export business, and was eventually treated as if it were a domestic sales operation, with a VAT rate of 13% applied, plus a late payment fee of five ten thousandths per day. This expense directly eats up the entire profit, so that the seller is deeply aware of:There is no longer any room for half-assed tax compliance!

Hi ~ I am the customer service of Enterprise Finance Group! We provide domestic (Shenzhen, Guangzhou, Shanghai, Beijing, Hangzhou, etc.) company registration, overseas (Hong Kong, the United States, Japan, the United Kingdom, Singapore, Thailand, Vietnam, etc.) company registration, Hong Kong identity application and renewal services, while covering the cross-border tax planning, shareholding structure design, compliance and risk control programs, such as the whole chain of corporate services. Contact me at any time if you have the need.Tel: 16620947137, WeChat: Qicaiyingjituan (can be added by direct search) or scan the QR code below to add!

01. Why tax non-compliance can lead to a direct business shutdown

For cross-border businesses whose sales have exceeded $5 million and who are recognized as general taxpayers, the cost of tax non-compliance is extremely high:

• Deemed to be domestic sales, VAT or eat all profits
  Cross-border e-commerce exports can originally enjoy VAT exemption or refund policy, but must provide a complete chain of evidence, such as customs declaration, proof of receipt of foreign exchange. If the long-term reliance on "purchase order export" or data is not true, the tax will be recognized as "deemed domestic sales", the general taxpayer will faceVAT on 13%The VAT is not payable on annual sales of 10 million dollars, for example. In the case of annual sales of $10 million, for example, no VAT would have been payable in compliance, but once it is treated as domestic sales, a retroactive payment will be required.1.3 million dollars.-- In the current context of a generally unprofitable industry, this could mean a whole year's work for nothing.
• Corporate income tax and late payment fees, burden stacked up
  Lack of input invoices will result in undeductible costs and inflated book profits. If the profit exceeds $3 million, the corporate income tax rate is as high as25%. In addition, late fees are calculated at five ten thousandths of a cent per day, with an annualized rate of over18%The tax is not a tax that can be paid for a long period of time, and the late fee can even reach more than 10% of the tax bill.

Hi ~ I am the customer service of Enterprise Finance Group! We provide domestic (Shenzhen, Guangzhou, Shanghai, Beijing, Hangzhou, etc.) company registration, overseas (Hong Kong, the United States, Japan, the United Kingdom, Singapore, Thailand, Vietnam, etc.) company registration, Hong Kong identity application and renewal services, while covering the cross-border tax planning, shareholding structure design, compliance and risk control programs, such as the whole chain of corporate services. Contact me at any time if you have the need.Tel: 16620947137, WeChat: Qicaiyingjituan (can be added by direct search) or scan the QR code below to add!

02. From "people check" to "number check", there is no dead corner in supervision.

Sellers who still use traditional means such as "zero declaration" and "low declaration" must wake up: the era of relying on luck to avoid regulation has come to an end.

• Automatic system comparison, no place to hide the data
  Nowadays, the data of cross-border e-commerce platforms have been directly synchronized to the tax department through the system, and automatically compared with the data declared by taxpayers. Any slight difference may trigger an early warning, and the traditional practice of "hiding income" is almost no longer possible.
• It's important to respond to alerts in a timely manner
  If the tax authority prompts the declaration abnormality by phone or SMS, it is often a chance for enterprises to remedy the situation by self-examination. At this time, active cooperation and timely tax reimbursement can often avoid penalties. Once it enters the formal audit program, in addition to making up taxes and late fees, it may also face0.5 to 5 times the fineThe consequences are even more dire.

Hi ~ I am the customer service of Enterprise Finance Group! We provide domestic (Shenzhen, Guangzhou, Shanghai, Beijing, Hangzhou, etc.) company registration, overseas (Hong Kong, the United States, Japan, the United Kingdom, Singapore, Thailand, Vietnam, etc.) company registration, Hong Kong identity application and renewal services, while covering the cross-border tax planning, shareholding structure design, compliance and risk control programs, such as the whole chain of corporate services. Contact me at any time if you have the need.Tel: 16620947137, WeChat: Qicaiyingjituan (can be added by direct search) or scan the QR code below to add!

03. Three Steps Toward Thorough Compliance and Robust Long-Term Development

In the face of historical problems and future operations, sellers should act decisively to establish a sustainable compliance system:

1. Proactive Resolution of Historical Problems
   For past non-compliant declarations, it is recommended to take the initiative to make corrections, pay back taxes within a manageable range, and remove the burden and lighten the load.
2. New business is compliant from the start
   Brand new business must follow the compliance path from the start: overseas warehouse model goes9810Direct mail parcels go9610B2B exports go9710For general trade, use0110. Only by being compliant can you take advantage of real tax benefits and secure your business.
3. Choosing a Professional Compliance Partner
   Compliance involves customs clearance, foreign exchange, finance and taxation, system docking and other links, purely manual processing has been difficult to meet the demand. This is especially true for companies like9810This type of model, you need to choose the real can run through the whole process, with practical experience of the service provider, to avoid "just out of the old pit, and into a new pit".

Hi ~ I am the customer service of Enterprise Finance Group! We provide domestic (Shenzhen, Guangzhou, Shanghai, Beijing, Hangzhou, etc.) company registration, overseas (Hong Kong, the United States, Japan, the United Kingdom, Singapore, Thailand, Vietnam, etc.) company registration, Hong Kong identity application and renewal services, while covering the cross-border tax planning, shareholding structure design, compliance and risk control programs, such as the whole chain of corporate services. Contact me at any time if you have the need.Tel: 16620947137, WeChat: Qicaiyingjituan (can be added by direct search) or scan the QR code below to add!

Conclusion: Compliance is the longest term track for cross-border going overseas

Financial and tax compliance may seem complicated, but taking each step solidly is instead the most stable and sustainable way of doing business. Focus9810 Compliance RefundsOur team has helped sellers in many places to complete a smooth transition and realize the peace of mind to go to sea.

If you encounter difficulties in cross-border tax compliance, please feel free to leave a comment or private message, we will plan a clear and feasible compliance path for you.

Hi ~ I am the customer service of Enterprise Finance Group! We provide domestic (Shenzhen, Guangzhou, Shanghai, Beijing, Hangzhou, etc.) company registration, overseas (Hong Kong, the United States, Japan, the United Kingdom, Singapore, Thailand, Vietnam, etc.) company registration, Hong Kong identity application and renewal services, while covering the cross-border tax planning, shareholding structure design, compliance and risk control programs, such as the whole chain of corporate services. Contact me at any time if you have the need.Tel: 16620947137, WeChat: Qicaiyingjituan (can be added by direct search) or scan the QR code below to add!