One wave has not yet subsided and another wave has arisen! With Amazon completing its first tax-related information reporting in accordance with the Provisions on Tax-Related Information Reporting for Enterprises on Internet Platforms, many sellers have found that there are significant differences between the data in the tax system and their own backend, and the data difference for some sellers has even reached the level of tens of thousands of dollars.

Meanwhile.Several Amazon sellers in Shenzhen have already received the third round of tax verification noticeIn the case of a business, a deadline is set for the submission of detailed business information, and this must be done within five days.This marks a new phase in tax regulation.

What information does the IRS really want for verification upgrades?

The information required for this verification covers the entire chain of business operations:

▲ Transaction flow:A complete sales order, billing list, and fund movement detail for July through September 2025 is required;

▲ Flow of funds:Requirement to submit bank flows for the same period and complete records of each collection platform;

▲ Financial accounting:Revenue and cost breakdowns are required for January through September of the current year;

▲ Business vouchers:Includes a full set of supporting materials such as procurement contracts, payment vouchers, logistics documents and invoices.

N.B. Scope of verificationExtended from a single quarter to the first three quarters of the yearThis shows that tax authorities are not only concerned with current period data, but also focus on the continuity and consistency of an enterprise's business trajectory. Once obvious anomalies are detected, it is likely that a full retrospective of historical operating data will be initiated.

Significant strengthening of regulation

This tax verification has demonstrated an unprecedented level of enforcement in two main areas:

Stricter verification procedures:The tax authorities have shifted from previous reminders of problems and interviews and communications to the formal issuance of Notices of Tax Matters.Explicitly limit the submission period to five working days.This change in procedure indicates that the system has identified the existence of specific tax risk indicators for the business and is by no means a routine inquiry.

The inspection cycle is significantly longer:Scope of information requested by tax authoritiesExpanded from the original single quarter to the first three quarters of the yearThis is a clear signal that the third quarter data is only the starting point for the review. This sends a clear signal that the third-quarter data is only the starting point for the review, and if significant discrepancies are found, it is likely that the full data will be traced forward for multiple operating cycles.

Transparency of platform data

Cross-border e-commerce tax supervision has entered a new data-driven phase. With the platform data reported directly to the tax authorities, the actual operation of sellers has basically realized transparency. The tax authorities are able to clearly grasp the seller's real sales scale, the frequency of capital flow, and the layout of related subjects.

The traditional model of tax regulation has been turned on its head:

Past:Reliance on manual spot checks with limited coverage;

Now:The system automatically compares the platform data with the declared data to accurately identify abnormal patterns.

Attention:This shift has dramatically increased the risk of the previous "two books" approach.The system's ability to automatically screen for proportions and patterns of data discrepancies means that verification coverage will far exceed sellers' expectations.

Coping strategies: from reactive to proactive

Sellers who have received a verification notice

Be sure to take the five business day deadline seriously and start preparing your materials immediately.The organization of information should focus on logical self-consistency, ensuring that a complete chain of evidence is formed between platform water flows, bank transfers, financial bookkeeping and business vouchers, and that the data can be corroborated with each other.

Sellers who have not yet been notified but have a history of problems

It is recommended to take the initiative to conduct compliance self-inspection, focusing on checking the extent of discrepancies between platform sales data and declared income, and reviewing the reasonableness of cost and expense charges.Consider gradually mitigating potential risks by, for example, making additional declarations to avoid reactive responses.

Sellers considering avoiding liability by deregistering their companies

This part of the seller needs to wake up to the fact that there have been cases:Writing off a company does not relieve it of historical tax liabilities.The tax authorities have the right to request the resumption of tax registration, and the cancellation procedure can only be completed after the tax has been paid. Therefore, it is important to properly deal with the historical problems before the write-off.

Finally, it is warmly recommended that in the context of data transparency, actively adapting to regulatory requirements and taking the initiative to promote compliance and rectification is the way to operate soundly. Enterprise Caiying Group suggests that sellers should improve their internal tax management system as soon as possible to ensure that all business data are true, complete and traceable, so as to cope with the increasingly stringent compliance requirements. If you encounter tax verification related issues, please feel free to contact us for professional support.