Bosses who do e-commerce and trade, brush up on this article and hurry up to compare their company's running water-

Is the water flow eyeing to hit 5 million or 6 million this year? Is the thought of being forced to convert to a general taxpayer and pay 13% of VAT keeping you awake all night?

I've recently been surrounded by dozens of e-commerce owners spouting off about just one pain point at the core:Profit is as thin as paper, most of them are only about 8%, and they can't be deducted because of the lack of input tickets.Once converted into a general taxpayer, 13% of VAT is paid, the hard-earned money is basically emptied, equal to a waste of time!

Some say."There's no way around it, the line is running to the line, so you have to be passive and upgrade."There are also people who take a chance and secretly use the sub-ledger system to falsely control the flow of water, and in the end, they are warned by the tax, and the tax penalty will come to their door, and the loss will be even more miserable.

In fact, there is really no need to panic! The industry has long had a mature, compliant, zero-risk solution that can hold on to the small-scale taxpayer status (enjoying the 1% VAT rate), but also have peace of mind to do the performance and rush the water flow - that's theRational split based on real businessThe

Today share a few cases to all bosses, there is a need to consult the tax compliance business bosses can also directly add customer service WeChat consulting(WeChat: jxhqcy890 / Mobile: 16625410105)

Emphasis: This is not a "false split", not a loophole, not to split the accounts of the system to deceive themselves and others of the false operation, but in accordance with the real business segments of the enterprise, split into different business subjects, so that each subject of the flow of water are steadily controlled in the 5 million (small taxpayers identified as the threshold) below, in full compliance with the tax regulations, tax The tax regulations are fully complied with, and the tax check can also be handled with ease.

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01.8 million of water flow, split the tax payment directly halved, secure small-scale status

Case 1.

We have a customer, is to do bags, boxes, the main layout of the online channel, the annual water flow of nearly 8 million, looking to be forced to turn the general taxpayer, the boss was anxious to go round and round -Their lack of input tickets is particularly problematic, and once they pay 131 TP3T of VAT, their profits go straight to zero.

We gave him a customized split solution that was simple and easy to implement:

• Subject A (Limited): Undertake Tmall store business, focusing on selling bags, flow control at about 4.5 million, just below the 5 million threshold, to preserve the small-scale status;
• Subject B (limited company):Undertake Pinduoduo, 1688 store business, specializing in wholesale packaging boxes, water pressure within 3 million, also enjoy the small-scale tax concessions;
• Subject C (self-employed): Undertake Shake Shack small store business, focusing on selling customized models of packaging (niche, low unit volume but high profit), apply for approved levy, the combined tax rate is only about 2%.

The effect is immediate:

Before the split, the combined tax payment cost was upwards of $10%;

After the split, the three main bodies are able to enjoy the small-scale related concessions, the integrated tax costs directly down to 4% or so, a year of tax savings, equivalent to more than hundreds of thousands of net profit, the boss was completely relieved.

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02.12 million running water, passive conversion to general taxpayers after the loss of the miserable

Case 2:

Shenzhen has a do women's boss, stepped on the biggest pit, that is, last year, the 12 million flow of water piled up in a company, the results were forced to turn to general taxpayers, and because of the lack of input votes can not be deducted, a year down to the light of the payment of taxes paid more than 1.8 million, to the hand of the profit is left little.

When we were approached this year, we were based onHer business logic (Shake Shack retail, Poundland wholesale, Taobao bulk orders), theDid a precision split:

• Subject A:Specializing in jittery women's clothing retail, the flow is controlled at about 4.8 million, small-scale taxpayers;
• Subject B:Specializing in wholesale women's clothing in Poundland, the flow control is about 4.5 million, small-scale taxpayers;
• Subject C:Specializing in Taobao bulk orders, registered self-employed, applying for approved levy, undertaking the remaining 2.7 million streams, with a combined tax rate of around 2%.

After the adjustment, the annual tax directly down to more than 700,000, a save more than 1 million tax, equivalent to the "edge of the loss" back to the "profit zone", the boss said directly:"If I had known that rational splitting worked so well, I wouldn't have paid so much wasted money for nothing last year!"

If you haveHong Kong Company Registration, Bank Account Opening, Annual Audit, Tax Audit, ODI Filing and Tax Complianceetc. needs, 👉 Welcome to sweep the code to add our online customer service (WeChat: jxhqcy890 / cell phone: 16625410105), to arrange for the manager to answer questions, to provide professional advice and full one-on-one service!

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03.3 Core Points to Ensure Split Compliance and No Tax Warnings

Many bosses worry about "split will not be tax check", in fact, as long as the following 3 principles, do not have to worry - tax check.It's all about "real compliance".And those 3 points are at the heart of the split:

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1. Operational boundaries must be clear

The business undertaken by different subjects can not be crossed or fuzzy. For example, in the case, subject A only does Tmall bags, subject B only does Pinduoduo wholesale, and subject C only does Jitterbug customized models, each subject has a clear scope of operation and business content, corresponding to different sales channels and products, which is the basis for compliant splitting.

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2. Funds, instruments must be fully matched

Which subject to undertake business, which subject will receive payment, invoicing, to achieve "business, funds, bills" three streams in one. For example, customers in the Tmall order (subject A), the payment of goods directly into the subject A's public account, invoiced by the subject A, and resolutely put an end to the "subject A receives the payment of goods, subject B invoicing" situation, which is the key to avoiding tax warning.

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3. Each subject must be independently accounted for

After the split, each business entity shall establish an independent financial accounting system, with its own books and accountants, accounting for income, costs and profits separately, and shall not be lumped together. This is not only a tax requirement, but also the core to ensure that the split is "real and effective", in line with the relevant national tax regulations on enterprise reorganization and separation, without any compliance risk.

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Finally, let's be honest: over 5 million dollars of water is never a "dead heat", it's a fluke!

Now many bosses, knowing that the flow of water to the line, but holding the "first punch performance, and then think of ways to follow up" of the fluke, either passive to general taxpayers, or engage in virtual split, false control of water, and finally either loss of profits, or tax penalties, the loss is not worth it.

You should know that the VAT rate of 1% for small taxpayers and 13% for general taxpayers is a huge difference, especially for e-commerce and trading enterprises with lack of input tickets and thin profits, the tax in between may be your net profit for the whole year.

Reasonable business split, in essence, is not "tax avoidance", but "reasonable planning" - relying on the enterprise's real business, in a compliant manner, to enjoy the state to give small-scale taxpayers! Tax concessions, not only does not violate the tax regulations, but also to maintain a stable profit, which is the choice of the smart boss.

Just like those bosses with an annual water flow of tens of millions of dollars, the reason why they can make a steady profit is not that they are lucky, but that they have done a good job in advance of the tax planning, with a reasonable way to split, avoiding the 13% VAT "pit", and leaving more money in the business, used to expand the business, expanding the scale of the business.

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If you are also facing these problems:

1. The flow is about to exceed 5 million dollars and does not want to switch to a general taxpayer;

2. Lack of input invoices, fearing that profits will be emptied by taxes after switching to general taxpayers;

3. Want to do business splitting, but do not know how to land, afraid of non-compliance.

Feel free to add us on WeChat for a free, personalized path assessment to help you get to shore with less hassle and stability.Sweep the code to add our online customer service (micro letter:jxhAna888), arrange professional consultants to answer questions, provide professional advice and one-on-one service throughout the process.
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Compliance transition is better sooner rather than later, the earlier the layout, the lower the cost, the more stable the development.

📌 If your business is in one of the following stages:

• [Start-up period] Annual revenue < 20 million: Worried about the impact of zero filing, private collection, and Golden Tax Phase IV?
• [Development Period] Annual revenue 20 million-100 million: troubled by export tax rebates, multiple private accounts, financial chaos?
• [Maturity] Annual revenue > 100 million: thinking about equity design, inventory optimization, IPO readiness?

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We have the corresponding solutions and practical experience.

Cross-border e-commerce there are many ways to plan, organized a detailed cross-border e-commerce tax compliance dry manual PDF, if there is a need for the boss can find me to get free ~ 👉 SweepWelcome to sweep the code to add our online customer service (WeChat: jxhqcy890 / cell phone: 16625410105), to arrange for the manager to answer questions, provide professional advice and full one-on-one service!

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Cross-border e-commerce tax compliance pain points

1、 Two sets of accounts: the internal accounts are chaotic and lead to difficult assessment, while the external accounts are difficult to file tax returns due to tax evasion and tax evasion;

2. Low income from external accounts, difficulties in financing, investment, mergers and acquisitions and IPOs;

3, no ticket purchases, personal accounts in and out of large sums of money, suspected of money laundering, tax evasion boss sleepless nights;

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Compliant Overseas and Domestic Equity Structures for Cross-Border Enterprises

1、Build a good in-country structure, that is, tax-saving and compliance

2, must set up a Hong Kong company as well as good positioning

3、Use of Hong Kong company offshore tax exemption policy

4. How is the store company built?

5、Why do we need to do offshore investment filing?

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Cross-border e-commerce fiscal and capital rational planning

1. Normative design for procurement without and with tickets

2. Reasonable pricing of goods exported from Hong Kong companies to achieve both tax savings and compliance

3, the company structure flow, goods flow, financial flow, tax flow, capital flow, contract flow, bill flow reasonable planning management

4、 How to make cross-border e-commerce enterprises and bosses' income legal? How to plan for shareholders' dividends?

5. Need to share the cost of payroll for in-country employees

6、 Must do cross-border service tax-free record

You can find the answers to all these questions in this PDF.

If you haveHong Kong Company Registration, Bank Account Opening, Annual Audit, Tax Audit, ODI Filing and Tax Complianceetc. needs, 👉 Welcome to sweep the code to add our online customer service (WeChat: jxhqcy890 / cell phone: 16625410105), to arrange for the manager to answer questions, to provide professional advice and full one-on-one service!