A while back, an e-commerce business owner suddenly came to us, looking very anxious:"In the future”Since the fixed-rate taxation approach isn’t working anymore and they’ve switched to auditing my books, will my store even be able to stay in business?"

In the past, when approval-based procedures were followed, many business owners simply didn’t care whether purchase receipts were provided, whether advertising expenses were recorded in the books, or whether logistics and labor costs were fully accounted for.

Now, as soon as the case is transferred for an audit, problems immediately arise:

With 10 million in revenue, the actual profit might only be 1 million, but because a large portion of the costs hasn’t been recorded, the reported profit could end up being three or four million.

Business profits may not increase much, but taxes could rise significantly.

So, what e-commerce business owners should really be wary of in 2026 isn’t just “whether the tax assessment method will still be allowed,” but rather:If an audit were to begin tomorrow, would your current set of books hold up?

Similar situations are not uncommon among e-commerce companies that have long relied on fixed-rate taxation. In the past, these companies paid taxes annually based on the fixed-rate method; once they switch to audited taxation, because costs have not been fully recorded in the books over a long period, it is easy for reported profits to be significantly higher than actual profits.

But before I continue, there’s one concept I need to clarify first:

In 2026, not all “fixed-rate taxation” practices nationwide were abolished across the board.

What has truly changed is that the leeway that once relied on tax assessments to resolve e-commerce tax issues is becoming increasingly limited.

I. Has the review process truly been “completely suspended”?

First, let’s clarify one concept:In 2026, not all assessed-tax collection practices nationwide will be abolished across the board.

The real change is that, as the reporting of tax-related information to platforms and digital tax oversight continue to deepen, businesses’ operating revenues are becoming increasingly transparent, and the scope for businesses that meet the criteria for maintaining accounting records to continue relying on assessed taxation in the long term is shrinking.

Why did so many e-commerce companies in the past prefer tax assessment?

It's very simple.

When purchase receipts are incomplete, costs are unclear, and the accounting foundation is weak, it is relatively simple to handle the situation using the assessed method.

But now, it is becoming increasingly easy to cross-check how much the platform has sold, how much businesses have reported, and how much money has been received into accounts.

At this point, it will become increasingly difficult to rely on “unclear accounting” to secure long-term tax assessments.

So the real trend isn't:Approval Suddenly Disappeared(math.) genusInstead,E-commerce is shifting from a “fixed-rate calculation mindset” to an era of “actual profit calculation.”

II. If a business switches to the audited accounting method, will its tax burden inevitably skyrocket?

Not necessarily.

The key to assessment based on audit is actually quite simple:Revenue – Costs – Expenses = Profit.

If a store has annual revenue of 10 million, with 6 million spent on inventory; 2 million on advertising, logistics, and platform fees; and 1 million on salaries, rent, and other expenses, its actual profit is 1 million.

If these costs and expenses are accounted for properly, there won’t be a significant difference between the reported profit and the actual profit.

What I really fear is a different scenario:

Even though revenue totaled 10 million, actual expenses amounted to 9 million; however, due to missing invoices for purchases, unrecorded expenses, and irregular payments from personal accounts, only 5 million in costs and expenses were ultimately reflected on the books.

In that case, the reported profit might become:5 million.

The boss clearly only made 1 million, but the books show a profit of 5 million.

the reason whyOnce the tax exemption is revoked, the real danger isn’t the tax rate—it’s that your actual costs aren’t fully reflected in your books.

III. After the phased-out policy is finalized, owners of Category 4 e-commerce businesses will be hit the hardest

Category 1: High cash flow, but the purchasing department does not require invoices on a long-term basis

This is the most typical category.

In the past, many e-commerce business owners often faced a dilemma when sourcing products:

One price for invoicing;

If no invoice is issued, the price is different.

To save a few percentage points, the boss decided to:“I don't need a ticket—just give me a discount.”

When applying the fixed-rate tax assessment method, it doesn't seem like there's much of a problem.

But once you start applying the logic of audit-based taxation, you’ll find that the few percentage points you saved in the past may not come close to offsetting the impact of costs that cannot be fully recorded in the books.

Especially once annual revenue reaches several million or tens of millions, as long as the cost gap continues to widen, reported profits can easily be inflated.

Category 2: Believing that only “purchases” count as costs

This is the second misconception many business owners have.

Whenever someone mentions a lack of funding, my first reaction is:“I'm going to get the purchase receipt.”

However, the operating expenses of an e-commerce company go far beyond the cost of goods.

Platform commissions, advertising and promotion fees, shipping and handling costs, overseas warehouse fees, employee salaries, rent, office expenses, software service fees, after-sales service costs……

These are all actual expenses incurred during the course of business operations.

If a company has not previously established a standardized system for expense reimbursement and documentation management, a large number of actual operating expenses are scattered across the owner’s personal WeChat account, bank cards, and employee out-of-pocket payments.

This ultimately leads to a very awkward situation:The company did spend the money, but it doesn't show up in the books.

Category 3: Long-term mixed use of corporate accounts, private accounts, and personal cards

Today, money from the platform goes into the company’s account; tomorrow, the boss uses his personal card to pay for company purchases; the day after tomorrow, a client transfers money directly to a shareholder’s WeChat account; and at the end of the month, the accounting department uses a pile of screenshots to prepare the books.

The business might actually be real.

But the problem is:Cash flows, business processes, contract flows, and document flows have become completely intertwined.

My boss used to think, “It’s my own money anyway.”

However, from the perspective of corporate management, the company and the owner as an individual are, by their very nature, two distinct entities.

Especially as transaction volumes continue to grow, what companies need most is not to open more accounts, but rather:Ensure that business operations, cash flows, and accounting records are mutually consistent.

Category 4: Those who have become “accustomed to approval” over the past few years”

The real problem for these companies won't arise until 2026.

It just hadn't come to light before.

Due to the long-term approval process, therefore:

• The procurement department lacks an awareness of the need for invoices;
• The company does not have a standardized reimbursement policy;
• Sign contracts however you like;
• The shipping documents were not retained;
• The platform's backend data is not systematically archived either;
• The boss himself doesn't even know how much money the company actually makes in a year.

The old way of thinking was: “I have to pay this much in taxes every year anyway.”

But once the tax collection method changed and it became necessary to recalculate based on actual income, costs, and expenses, it became clear that:

The company has not established a financial system capable of supporting an audit.

IV. So, now that the tax assessment system is gone, do we have no choice but to bear the heavy tax burden?

Of course not.

A major misconception among many business owners is that they interpret “financial and tax compliance” as:I used to pay 30,000, but now I just pay 300,000 like a good citizen.

True compliance means taking a fresh look at a company’s actual business operations:

• What type of business entity do you operate under?
• Where are the goods sourced from?
• Can the supplier provide proof of compliance?
• What export model is used?
• How is platform revenue recognized?
• How do we get the money back?
• How are expenses such as advertising, logistics, and labor costs allocated?
• In the end, how much money did the company actually make?

Without clarifying these issues, simply discussing a “prescribed tax rate” is of little significance.

So for e-commerce companies in 2026, what they really need to focus on is:“Where else can it be verified?”Steering:“How can I run my business in a way that’s both compliant and financially viable?”

These are two completely different business models.

V. If you’ve always followed the standard procedure in the past, here are the first 5 things you should do now

01 Start by conducting a “mock audit” of your store”

Don’t wait until the tax collection method has actually changed to do the math for the first time.

Just run a test using the data from the past 6–12 months:

How much is the income?

What is the purchase cost?

How many costs can be properly recorded in the books?

What are the costs for advertising, logistics, personnel, warehousing, and other expenses?

What is the final reported profit?

Then ask yourself this question:If an audit were to start today, would my current set of books hold up?

For many business owners, the real issue becomes clear once this step is completed.

02 Re-examine the actual costs

Documents such as purchase contracts, payment records, invoices, shipping records, order information, and platform statements should all be reclassified and organized.

The reference case also suggests that documents such as purchase contracts, payment vouchers, and logistics documents can be reorganized to form a more comprehensive chain of business evidence.

However, it is important to emphasize here that:

Organizing vouchers does not mean fabricating them; resolving missing vouchers certainly does not mean buying them.

A true approach to compliance involves demonstrating what business activities actually took place within a company, rather than fabricating a set of business transactions solely to reduce the tax burden.

03 Re-evaluate Your Supply Chain

If your key suppliers have been with you for a long time:

We cannot issue an invoice;

The contract is not standardized;

The payer and the transaction party are not the same;

Incomplete business information;

So what we’ll really need to address in the future is likely not a financial issue, but rather:

The supply chain itself needs to be adjusted.

It may be necessary to re-evaluate suppliers, standardize procurement contracts and payment methods, or redesign the procurement process based on actual business conditions.

Because truly sustainable compliance can only occur when:Before the transaction takes place.

Instead of waiting until the end of the year, when it's time to close the books, to figure it out.

04 Get a Real Grip on All Operating Expenses

Many companies claim they are “short on funds,” yet at the same time, hundreds of thousands or even millions in actual expenses have not been recorded in their financial systems.

Who pays for the advertising?

Which account are the shipping fees charged to?

Do employees have receipts for their expense reimbursements?

Is there a record of the money the boss advanced?

Have the fees deducted by the platform been reconciled?

All of this needs to be reviewed.

In the future, the owner of a mature e-commerce company shouldn’t focus solely on:

GMV, order volume, and ad ROI.

See also:Net income and after-tax profit.

05 Re-evaluate Your Business Model

Especially cross-border e-commerce.

Don't just ask:

“What is the corporate income tax rate?”

Instead, we should consider the entire chain as a whole:

• How should the business structure be set up?;
• How to Conduct Domestic Procurement;
• What export model should be used;
• How to Operate an Overseas Platform;
• How do I get my cross-border payment back?;
• How are domestic costs determined?;
• How are corporate profits generated?;
• How much will the shareholders ultimately receive?

Many companies appear to have high sales figures, but the owners don’t actually end up keeping much of that money.

So what a company should really be calculating isn't:“What is the tax rate?”

Instead:“If I make 10 million in sales, how much money will I actually have left after deducting all costs and taxes?”

VI. After the exit is approved, what really needs to change is the business model.

When it comes to e-commerce tax and financial compliance in 2026, it’s no longer enough to simply hire an accountant at the end of the year to “tidy up the books.”

The truly effective order should be:

Step 1: Check for risks first

First, thoroughly review the company’s existing revenue, costs, expenses, invoices, cash accounts, platform data, and tax filing status.

Let's see where exactly the problem lies.

Step 2: Calculate the tax burden

Simulate actual profits and tax burdens under different business models based on the company’s actual operations.

It's not just a matter of looking at “which tax rate is lowest,” but rather comparing which model is better:

It can be implemented, explained, and maintained over the long term.

Step 3: Further Adjust the Business

If the problem is found to be with procurement, adjust the procurement process;

If the problem lies with exports, then we need to reevaluate our export model;

If the problem lies with the payment receipt, check the fund flow;

If the problem lies with the finances, establish a compliant accounting and expense management system.

Truly mature financial and tax compliance should not require business operations to accommodate a set of “prettied-up books.”

It should be:Ensure that the financial records accurately reflect business operations, while using reasonable business arrangements to bring the company’s tax burden and profits back to normal levels.

VII. What Should Cross-Border Sellers Do? What Services Does Qicaiying Offer?

Now that regulatory restrictions have tightened, what cross-border sellers really need to address is not just “how to file taxes this year,” but rather to re-evaluatePlatform Revenue, Procurement Costs, Exports, Capital, and the Relationship Between Domestic and Overseas CompaniesGet a clear understanding of it.

This is especially true for cross-border businesses operating across multiple platforms, stores, and entities. If there is a disconnect between front-end operations and back-end financial and tax management, issues such as revenue discrepancies, unreconciled costs, incomplete export documentation, and unclear explanations for domestic and international fund transfers can easily arise.

To address these common financial and tax challenges faced by cross-border e-commerce companies, Qicaiying offers:

01 Cross-Border E-Commerce Financial and Tax Health Checkup

Comprehensive VerificationPlatform revenue, tax returns, cash flow, procurement costs, export data, and transactions between domestic and overseas companies, identify potential risks such as revenue recognition, cost gaps, commingling of public and private funds, and related-party transactions.

First, identify the company’s current issues, and then develop a corrective action plan based on its actual business operations.

02 Establishing a Compliance Accounting System for E-commerce

For Amazon, Temu, independent websites, etc.Multi-platform, multi-store, multi-currencyBusiness scenarios that help companies establish a more comprehensive financial accounting system.

From reconciling sales revenue to aggregating expenses such as refunds, advertising fees, platform commissions, exchange rate differences, and logistics and warehousing costs, this enables businesses to truly get a clear picture of:

How much each store sold, how much it spent, and how much it earned.

03 Import/Export and Tax Rebate Compliance Services

Based on the company’s actual export operations, with regard toDifferent Cross-Border E-Commerce Export Models, assist companies in streamlining their accounting processes related to export registration, document management, tax-exemption declarations, export tax rebates, and overseas warehouses.

Enable procurement, exports, collections, and tax filings to form a more complete business cycle.

04 Planning Compliance Structures for Domestic and Overseas Companies

For simultaneous use ofDomestic companies, Hong Kong companies, and other overseas entitiesCross-border sellers should, based on their actual business operations, clarify the division of responsibilities among various entities, fund flows, related-party transactions, and profit distribution methods.

Avoid a situation where “a multitude of companies are registered, but their operations, finances, and tax matters are disconnected from one another,” and ensure that domestic and overseas structures truly support the company’s long-term operations.

If you have any needs, please feel free to contact our customer service team.WeChat: qcygscszk or call 18676749275

concluding remarks

In the past, many companies could get their businesses up and running first and then gradually address financial and tax matters; but in the future, financial and tax matters are increasingly becoming an integral part of business operations themselves.

How to handle procurement, how to obtain invoices, how to process exports, how to collect payments, and how to divide responsibilities between domestic and overseas companies—all of these factors ultimately affect the company’sActual Profits and Actual Tax LiabilityThe

So, rather than waiting until the tax assessment process hits a dead end, tax liabilities become irregular, or the platform’s revenue and reported data no longer match—and then having to take corrective action—it’s better to thoroughly analyze your business model in advance.

First, assess risks; then, manage costs and standardize accounting practices; finally, recalculate the company’s tax burden and after-tax profits.

Qicaiying aims to help cross-border businesses not just with a single tax filing, a single bookkeeping task, or a single structural adjustment, but rather by focusing on the company’s actual business operations toEntities, Operations, Funds, Bills, and TaxesTruly linked together.

For cross-border sellers, what truly sustains business growth in the long run has never been finding the next “low-tax solution.”

Rather, it involves establishing a system:A compliance management system in which business operations withstand scrutiny, financial records withstand audits, tax liabilities are accurately calculated, and profits are retained.