Mr. Weng runs a business on Pinduoduo, selling paper products for daily use—he has his own workshop, dozens of employees, and quarterly revenue in the millions. Business is going well, but his books are a mess.

”Platform revenue goes into personal accounts, employee salaries aren’t recorded, and there are no invoices for logistics and marketing fees. He can issue special VAT invoices for purchases, but that would add a few percentage points, so he thinks it’s not worth it—”Anyway, customers don’t ask for invoices, so if I don’t issue them, I won’t have to pay taxes, right?’"

Toward the end of last year, he received a series of text messages from the tax authorities. He didn’t think much of them—until the tax bureau issued a formal notice: he had to file an amended return and pay nearly 800,000 in back taxes.

The following content is based on real client cases from Qicaiying; the data has been anonymized.

If you’re in the same situation as Mr. Weng—your platform income is deposited into your personal account, you’ve never requested input invoices, or you’ve received a tax text message and don’t know what to do—send us your details now, and Qicaiying will provide you with a free assessment.WeChat: qcygscszk or call 18676749275

01 The Situation at Weng Headquarters

Mr. Weng’s business structure is similar to that of many Pinduoduo sellers:

I. 1 general taxpayer company (primary source of revenue) + 3 small-scale companies

II. Specializes in household paper products, with its own production facility and operations team, and dozens of employees

III. A general taxpayer company reports quarterly revenue in the millions, with Pinduoduo accounting for the vast majority of that revenue.

IV. The combined revenue of three small-scale companies is on par with that of general taxpayers.

V. All platform revenue is deposited into personal accounts; no business account is linked.

6. The supplier can issue special invoices, but charges a few percentage points extra; I’ve never asked for one.

VII. All downstream customers are individual buyers, so there is generally no need to issue invoices; they believe that ”if no invoice is issued, no tax needs to be paid.”

If you check off three or more of these seven items, there’s a good chance your books are a mess.

02 I received a tax text message.

Before the inspection, Qicaiying visited the company for the first time to present a proposal. Mr. Weng’s response was: ”The cost of compliance is too high. The company next door was inspected and nothing happened to them, so let’s wait a little longer.”

In the last few days of the year, I received a series of text messages from the tax office. I ignored them.

His reasoning was simple: ”It’s just a text message—probably just a reminder; they won’t actually check up on it.”

But there’s one thing he doesn’t know: Pinduoduo and Alibaba’s backend data systems are now linked to the tax authorities. The tax authorities have a clearer view of every single transaction on the platform than he does.

03 Nearly 800,000 in back taxes

The company is going out of business.

The tax authority issued a clear notice: file an amended return. The calculated amount left him reeling—he owed nearly 800,000 in back VAT.

Mr. Weng panicked. His attitude shifted from ”I don’t care” to ”What should I do?” He kept asking, ”Is there any way to pay a little less? Can I pay in installments?”

What does nearly 800,000 mean? His general taxpayer company generates several million in revenue per quarter, but its gross profit margin is only about 30 to 40 percent. Having to pay nearly 800,000 in a single installment would cause his cash flow to dry up immediately.

He found Qi Cai Ying and said right off the bat, ”As long as I can pay less or pay in installments, I’ll accept the compliance fee.”

04 What did Qicaiying do for him?

Qicaiying does not offer a shortcut to ”paying less tax,” but rather a compliant path to ”paying taxes appropriately, paying in installments, and avoiding unnecessary tax payments.”

Step 1: Review past records + file amended returns.

 First, sort through the disorganized records item by item—identifying which entries have receipts, which don’t, and which can be corrected and which cannot. Once you’ve finished organizing them, file an amended return with the tax authority to avoid any escalation of fines and late payment penalties.

Step 2: Apply for a refund of the outstanding tax credit. 

Nearly 800,000 doesn’t have to be paid all at once. Qicaiying helped General Manager Weng apply for ”deferred tax credits”—first paying a portion based on the industry’s tax burden rate, then offsetting the remainder with cost invoices later. Essentially, this is ”paying taxes in installments plus offsetting with invoices”; it’s not ”not paying,” but rather ”reasonable installment payments.”

Step 3: Corporate Income Tax Optimization. 

Guide General Manager Weng to collect compliance receipts for raw materials, employee salaries, office supplies, and other expenses, and claim reasonable deductions—thereby bringing taxable income back to its actual level and ensuring that profits are no longer artificially inflated due to a ”lack of receipts.”

Step 4: Cost Invoice Planning for Small Businesses.

 Three small companies lack standard invoices, but they still have to pay corporate income tax. By aligning with the tax assessment policy for individual businesses in the industrial park, the cost of issuing invoices is more cost-effective than adding a few percentage points when sourcing suppliers on their own.

Step 5: Long-term compliance accounting services. 

Starting in 2026, all companies must maintain proper and compliant accounting records—including real-time monitoring of accounting transactions, tax filings, and invoice management—to avoid future audits.

To use an analogy: Mr. Weng used to be like someone ”running around naked,” but Qi Caiying gave him a bulletproof vest—now he no longer fears tax audits, he doesn’t have to empty his pockets all at once to pay back taxes, and he can run his business as usual.

05 So, what was the final outcome?

The amount of back taxes owed was significantly reduced—by paying the outstanding tax credit balance in installments and offsetting it with tax credits from previously unclaimed invoices, the final amount actually paid was less than half of the full amount owed.

More importantly, we’ve shifted from ”passively awaiting audits” to ”proactively ensuring compliance”—platform revenue is deposited into corporate accounts, salaries are paid into employees’ accounts, costs are supported by receipts, and quarterly tax filings are submitted on time. When the tax authorities come to audit us again, our books will be in order.

Mr. Weng later said, ”If I’d known, I would have done it sooner—it would have saved me a lot of trouble down the road.”

06 Which type of account do you have?

In this case, the most valuable aspect isn’t ”how much tax was saved,” but rather a signal:

The platform's data is now linked to the tax authorities. The tax authorities can see every transaction in your Pinduoduo backend.

It took just a few text messages for President Weng to go from ”I don’t care” to ”Get on it right away.”

Which of the following best describes your current account:

• Did the income go into a personal account instead of a business account?

• The supplier can issue invoices, but you’ve never asked for one?

• Employee wages haven't been recorded? No invoices for logistics promotions?

• Do you think, ”If I don’t issue an invoice, I don’t have to pay taxes”?

If you check one of these boxes, your account may be at risk. If you check three or more, we recommend that you run a diagnostic check right away. If needed, you can contact Qicaiying’s customer service,WeChat: qcygscszk or call 18676749275

07 What can Qi Cai Ying do for you?

Feel free to keep reading

I. Review of Past Records and Filing of Amended Returns. Sort out the混乱 accounts item by item, file amended returns with the tax authority, and avoid fines and late payment penalties.

II. Tax Burden Optimization. Applying for installment plans for outstanding VAT carryovers, offsetting VAT with cost invoices, and claiming reasonable deductions for corporate income tax—we do not evade or avoid taxes, but rather optimize the tax structure within the legal framework.

III. Cost Invoice Planning. By aligning with the tax assessment policies for self-employed individuals in the industrial park, we can resolve the issue of insufficient standard invoices, and the cost of issuing invoices is more cost-effective than covering the shortfall on your own.

IV. Long-Term Compliance Accounting Services. Real-time monitoring of accounting, tax filing, and invoice management to prevent future audits at the source.

V. Responding to Tax Audits. If you have already received a text message or notification, Qicaiying will assist you every step of the way—from correcting your tax return to negotiating your tax liability to arranging an installment plan.

Send us your business model and financial statements, and Qicaiying will provide you with a free assessment—how many risks are in your books? How much do you need to make up? How many installments can you pay in?

WeChat: qcygscszk or call 18676749275

Enterprise Finance Group

Founded in 2015 and headquartered in Shenzhen, Qicaiying Group is a leading provider of corporate services and tax compliance solutions in China.

The Group is deeply committed to providing services across the entire corporate lifecycle. Its core business areas include: business registration, bookkeeping services, tax compliance, overseas company registration (Hong Kong, the U.S., Singapore, Mexico, etc.), cross-border structuring, outbound direct investment (ODI) filing, overseas tax planning, bank account opening assistance, and identity planning.

Over the past decade, Qicaiying has served more than 10,000 corporate clients and has accumulated solid practical experience in key areas such as corporate structuring in Hong Kong and overseas, cross-border tax and financial compliance, and corporate accounting management. The Group boasts a team of seasoned financial and tax advisors who closely monitor changes in domestic and international tax systems and regulatory trends, providing clients with one-stop solutions ranging from structural planning to implementation.