Recently, many cross-border sellers have once again received a headache-inducing email: Amazon has resubmitted the tax reports for the fourth quarter of 2025 and the first quarter of 2026.

• Some sellers found after downloading it that their earnings still didn't add up;
• Some people feel even more anxious after reviewing the costs: even though the back-end costs are clearly significant, they aren’t fully reflected in the report;
• Some sellers also say: “We’ve already done our calculations based on the old data, but now the platform has released a new version. Which one should we use as the basis?”

Today, we’re not just going to discuss “why Amazon released data again,” but we’re going to help sellers understand the key issues behind this that are truly worth paying attention to:

1. Why do tax reports and back-end payment receipts often not match up?
2. Will the data submitted through the platform affect the company’s subsequent filings?
3. How should these differences in revenue, expenses, refunds, and exchange rates be explained?
4. If the historical record is incomplete, where should we start filling in the gaps now?

One,Submission of Tax-Related Information by the Platform(math.) genusIt has now entered a phase of normalcy

Amazon's second push—on the surface, it appears to be nothing more than a correction of platform data.

However, in the current regulatory context, the message it sends is very clear:

The submission of tax-related information by cross-border e-commerce platforms has now become a routine practice.

Announcement No. 15 of 2025 issued by the State Taxation Administration specifies that internet platform companies must submit the identity information of business operators and employees on their platforms, as well as revenue data for the previous quarter, within the month following the end of each quarter; the first submission period is from October 1 to 31, 2025.

In other words, platform reporting is not a one-time process, but rather an ongoing, quarterly activity.

More importantly, the notice also specifies that if a platform company discovers an error in the tax-related information it has submitted, it must correct and resubmit the information within 30 days of the discovery.

So, it’s not surprising that Amazon sent a second push notification.

This clearly illustrates that, in the future, sellers will not be dealing with a “fixed tax report,” but rather a data stream that is dynamically updated, continuously submitted, and subject to verification by the tax system.

In the past, many sellers were concerned only with three issues:

1. Are there any orders for the store?
2. Will we be able to recover the funds?
3. Will my account be suspended?

But now, we must also pay closer attention to one more issue:Can companies clearly explain the data that the platform submits to the tax authorities?

 II. Why Do Tax Reports and Back-End Revenue Often Not Match?

Many sellers' first reaction upon seeing their tax reports is:

“Why is this different from the payment report?”

“Did Amazon make a mistake?”

“I didn't actually receive that much money. Why does the report show such a high income?”

In fact, tax reports and the payment reports sellers typically view in their backend dashboards are not based on the same criteria to begin with.

1. Different time frames

When sellers review their payment reports, they typically focus more on settlement times, crediting times, and payment cycles.

However, tax reports typically rely more on transaction-side and order-side data. For example, if an order is shipped at the end of March but payment isn’t received until April, this can easily lead to inter-period discrepancies during quarterly reconciliations.

If sellers try to reconcile the “amount received” directly with the “amount reported on tax returns,” they’ll most likely just get more and more confused.

2. Differences in the definition of income

Sellers are most concerned with their “net income”—that is, the money that ultimately ends up in their account after deducting commissions, FBA fees, advertising costs, refunds, and other expenses.

However, the revenue reported by the platform is often not the “net amount received” as understood by sellers.

According to an announcement by the State Taxation Administration, revenue information includes revenue derived from the sale of goods, services, and intangible assets, covering total revenue, refund amounts, and net revenue, among other items; total revenue includes the full purchase price and the value-added tax (VAT) amount, without deducting fees such as commissions and service charges paid to platform companies.

This means that there is an inherent discrepancy between the “actual profits” as seen by sellers and the “revenue” reported in the platform’s tax-related reports.

3. Differences in exchange rate methodologies

Cross-border sellers handle settlements in multiple currencies, including the U.S. dollar, the euro, the British pound, and the Japanese yen.

When sellers handle their own accounting, they may convert amounts using monthly exchange rates, settlement rates, or the actual exchange rate at the time of receipt; however, when the platform reports these figures, it may convert them to RMB according to the prescribed methodology.

The announcement also states that when platform companies settle transactions in currencies other than the RMB, the revenue they report must be converted to RMB using the midpoint exchange rate in effect on the first day of the month in which the tax-related information is submitted or on the date the transaction occurred, and this conversion rate may not be changed for 12 months after it is determined.

Therefore, even if the order amounts are the same, the RMB amounts may not match if the exchange rate bases used are different.

4. Differences in the basis for calculating expenses

This is also an issue that many sellers tend to overlook. While the platform’s tax reports may list certain commissions and service fees, this does not constitute the company’s own complete ledger of costs and expenses.

Advertising fees, warehousing fees, refund processing fees, overseas warehouse fees, initial shipping costs, procurement costs, service provider fees, and foreign exchange gains or losses—sellers must track all of these themselves.

If revenue is fully recognized but expenses cannot be deducted, the reported profit will be inflated.

In the end, sellers may end up paying more in taxes not because they’re making a large profit, but because they can’t document their costs, which leads to their profits being “overestimated.”

Three,The real danger isn't the differences in the data, but rather the inability to explain those differences.

After this resubmission of Amazon tax data, some sellers were able to verify the information quickly.

They know which quarter each order corresponds to, which month a refund occurred, and how to allocate expenses; they can also take screenshots of discrepancies, add notes, and keep records.

Sellers like this aren't necessarily at a disadvantage, even if there are discrepancies in the data.

The following categories of sellers are the ones that pose the highest risk.

1. Sellers who consistently underreport or report zero sales

In the past, some sellers believed that because the platform was based overseas, it would be difficult for domestic tax authorities to fully track sales data; as a result, they consistently reported lower income—or even failed to report their income accurately—for extended periods.

However, now that the regular reporting of tax-related information by platforms has become the norm, the scope for this practice is shrinking.

If there is a significant and persistent discrepancy between the revenue reported by the platform and the revenue declared by the business, and no reasonable explanation is provided, the likelihood of being asked to provide an explanation, pay back taxes, or even undergo an audit will increase.

2. Sellers who receive or make payments using personal cards, third-party accounts, or relatives’ accounts

The business entity is a company, but the payments are deposited into a personal account; the store is operated by Company A, but the payments are routed through Company B’s account; the platform data, bank statements, and the entity filing the tax return do not match.

Once questioned about the flow of funds, it becomes extremely difficult to explain.

3. Sellers operating multiple stores, multiple sites, or a mix of multiple business entities

Having multiple stores, multiple sites, multiple business entities, and multiple payment accounts all mixed together may seem convenient in the short term, but in the long run, it leads to a complete mess of accounts.

If revenue allocation, cost allocation, and expense allocation are unclear, ultimately, no entity will be able to account for them properly.

4. Sellers with serious violations regarding purchases without invoices

To keep costs down, many cross-border sellers’ front-end procurement teams decline to request invoices, request fewer invoices, or are even unable to obtain compliant invoices for extended periods.

However, under the audited assessment system, costs not supported by valid documentation are often difficult to deduct for tax purposes.

The result is that while the platform’s revenue is fully visible, procurement costs cannot be substantiated, and reported profits are artificially inflated.

5. Sellers where the party paying for the export, the party handling customs clearance, and the selling party are not the same

Platform sales data, export customs declaration data, foreign exchange receipts data, and tax return data cannot form a closed-loop system.

While no issues may be apparent under normal circumstances, companies can find themselves at a significant disadvantage once they are asked to provide documents such as contracts, orders, logistics records, and financial account information. An announcement by the State Taxation Administration also clearly states that when tax authorities conduct tax audits in accordance with the law or identify tax-related risks, they may require internet platform companies and relevant parties to provide tax-related information, including contracts, orders, transaction details, financial accounts, and logistics records.

So, sellers need to understand that the tax authorities are not opposed to reasonable discrepancies. Cross-period orders, delayed refunds, exchange rate conversions, and the allocation of expenses can all lead to discrepancies. The question is, can you explain them clearly?

1. Is there a ledger?
2. Is there any proof?
3. Do you have any screenshots?
4. Is there a work order?
5. Is there a correspondence between the filing records and the accounting sets?

It’s not a big deal if the data doesn’t match up; what’s dangerous is not being able to explain it.

IV. 6 Things Sellers Must Do Now

In light of Amazon’s resubmission of tax data, sellers should not simply worry about it—and they certainly should not wait until they receive a notice from the tax authorities before taking action.

The most important thing to do right now is to get your data system in order.

1,Download and save the latest version of the tax report now

If the Q4 2025 and Q1 2026 tax reports have already been updated in the backend, we recommend downloading them as soon as possible and not keeping only the old versions.

At the same time, save screenshots of the platform email, the download time, the report version, and the backend path. If the report cannot be downloaded, or if the email indicates that it has been updated but there is no download button, you should promptly open a support case and save the case number and the platform’s response.

2,Reconcile revenue on a quarterly basis; do not simply compare it directly with the amounts posted to the accounts.

When reconciling revenue, we recommend organizing order details on a quarterly basis, with a focus on distinguishing between:

Order date, shipping date, payment receipt date, refund date, and exchange rate conversion date.

This is especially true for orders placed at the end of the quarter, where it’s common for shipments to be made in the current quarter but payments to be received in the next quarter.

If you don’t adjust for time-period differences and simply compare payment reports with tax reports, it’s easy to mistakenly conclude that there’s a “platform reporting error” or “revenue anomaly.”

3,Complete the expense ledger

Tax reports are merely platform-side data and do not constitute a complete set of a company’s financial records.

Sellers must account for at least the following expenses: procurement costs, platform commissions, FBA shipping fees, storage fees, advertising costs, refund fees, inbound logistics costs, overseas warehouse fees, service provider fees, platform monthly fees, and foreign exchange gains or losses.

In particular, advertising expenses, logistics costs, and procurement costs—if not properly allocated in a timely manner—can easily lead to a situation later on where “revenue appears high, costs appear low, and profits are artificially inflated.”

4,Establish a Variance Ledger

If you find discrepancies between your tax reports and the backend or filing data, don’t just keep it to yourself—and definitely don’t simply say, “The platform’s data is inaccurate.”

We recommend establishing a discrepancy ledger that includes, at a minimum: the amount reported by the platform, the amount reported in the backend payment system, the amount in the company’s accounting records, the amount reported for tax purposes, the discrepancy amount, the reason for the discrepancy, and supporting documentation.

For example, if a discrepancy in an order is due to a payment received across quarters, attach a screenshot of the order and the payment report; if an expense is not reflected in the tax report, attach the expense details from the backend, the invoice, and the payment records; if a refund occurs in the next quarter, attach the refund form and a screenshot from the backend.

5,Open a case promptly for any unusual items to maintain a record.

If a seller notices obvious discrepancies in the report—such as missing orders, unusual amounts, significantly underreported fees, inconsistencies in reported amounts, or an inability to download the report—they should promptly open a case through the backend to request an explanation or correction from the platform.

Save the work order number, email correspondence, platform replies, and screenshots.

If communication with the tax authorities is needed in the future, these documents will serve as the basis for the seller’s explanation.

6,Prioritize High-Risk Quarters

Many sellers' historical records are already in disarray, so it's impossible to catch up on everything at once.

In this situation, it’s not advisable to blindly redo everything from scratch; instead, focus on the key points first.

Prioritize quarters for which the platform has already received tax reports, quarters with high sales, quarters with significant revenue variances, quarters with a severe shortage of expense vouchers, and quarters for which tax reminders or risk alerts have been received.

First, sort out the parts that are easiest to compare and for which early warnings are easiest to generate, and then gradually fill in the historical data.

V. Compliance is not about paying more taxes, but about avoiding inflated profits.

For many sellers, the first reaction when the topic of compliance comes up is: “Does this mean we'll have to pay more taxes again?"

But in reality, what really causes sellers to pay more taxes is often not compliance, but non-compliance.

If revenue is reported in full by the platform, but there are no invoices for procurement costs, no documentation for logistics expenses, no aggregation of advertising expenses, and no records of refund costs, the profit shown on the company’s books will be inflated.

Even though the actual operating profit isn’t very high, because the costs cannot be substantiated, the company ends up facing a higher tax burden.

Therefore, the essence of compliance is not “paying more taxes,” but rather:

🔷 Accurately recognize revenue that should be recognized;

🔷 Deductible costs that can be substantiated;

🔷 Take full advantage of the policies you’re entitled to;

🔷 The differences in this explanation are supported by evidence.

For cross-border sellers, maintaining proper accounting practices, handling customs declarations correctly, managing foreign exchange receipts properly, and accurately allocating expenses actually help protect their profits.

This is especially true for sellers engaged in export business: if their front-end documentation—including procurement, logistics, customs clearance, foreign exchange receipts, and accounting records—is complete, they will have a better opportunity to develop a comprehensive plan that takes full advantage of policies such as export tax exemptions, tax refunds, and tax incentives.

It's not that we're afraid of sellers getting too big.

The concern is that while sales may grow, accounting will still be managed like a small workshop.

VI. Sellers Must Take a Two-Step Approach: From Settling Old Accounts to Establishing New Ones

Amazon's tax data feed is just the beginning.

Moving forward, cross-border sellers can no longer rely on stopgap measures for financial and tax compliance; instead, they must build a system starting with their day-to-day operations.

For sellers with historical issues, the first step is to cut their losses.The

Do not blindly back-fill your accounts, do not arbitrarily amend your tax returns, and do not be swayed by simplistic claims that you can “resolve everything in one go.”

A more prudent approach would be to first clarify the relationships among the business entity, the store, the account, the filing records, and the platform reports.

1. Which stores correspond to which entities?
2. Which payments go into which account?
3. Which quarters show the greatest revenue variations?
4. Which types of expense receipts are most frequently missing?
5. Which filing records need to be reevaluated?

First, categorize the risks by level, then determine the order in which to address them.

For new business, the second step is to set up the accounts from the very beginning.The

New business must ensure consistency in the business entity, complete contracts, complete invoices, complete logistics and customs clearance documentation, regular collection of platform fees, and proactive quarterly reconciliation of tax reports.

Don’t wait until the end of the year to reconcile your accounts, don’t wait for a tax reminder to submit missing documents, and certainly don’t wait until the platform sends you the data to realize you’re missing detailed records.

In the future, cross-border e-commerce will not only be about product selection, operations, and advertising, but also about financial and tax compliance capabilities.

🔷 The clearer the accounting, the safer the funds;

🔷 The more complete the documentation, the more manageable the risk;

🔷 Those who can establish a compliance framework early on will have a better chance of weathering economic cycles.

put at the end

Amazon’s recent re-release of tax data is not merely a simple correction by the platform, but rather another reminder that cross-border e-commerce has entered an era of data transparency.

Cross-border e-commerce is no longer a quick-in, quick-out business; rather, it is a sector characterized by long cycles, a strong emphasis on operations, and strict compliance requirements.

Sellers who will go far in the future aren’t necessarily those with the highest short-term sales, but rather those with clear accounting, tax compliance, secure funds, and manageable risks.

If you have already received your Amazon tax report, or if you’ve noticed that your platform data, payment data, and filing data have been inconsistent for an extended period, we recommend conducting a self-assessment of your financial and tax compliance as soon as possible.

The sooner you sort things out, the more control you’ll have; the later you address them, the higher the cost will be.