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In the past two days, the e-commerce circle blew up a big thunder.On January 21, the Shanghai Tax Bureau officially announced that Pinduoduo was fined 100,000 yuan for failing to report tax-related information in accordance with the regulations!

This is the first time a head platform has been publicly penalized for tax-related information reporting.

Many cross-border sellers may think: "This is a domestic e-commerce business, what does it have to do with me?" Wrong! Big mistake! Behind this case, there is a tax compliance signal that all platform sellers must be alert to: the platform tax-related information reporting system is becoming a "new killer app" for tax supervision.

01 What Poundland is doing wrong

The penalty was not a "sudden raid", but a strict supervision by the tax authorities on the platform's fulfillment of its obligation to report tax-related information, and the whole process was clear and cautionary: after the implementation of the Provisions on the Reporting of Tax-Related Information by Internet Platform Enterprises in 2025, Pinduoduo failed to report the operators and practitioners in the platform in the third quarter of 2025 as requested Pinduoduo failed to report the tax-related information of operators and employees on the platform in the third quarter of 2025 as required.

The tax authorities 2025 issued a Notice of Order to Make Corrections within a Time Limit in accordance with the law, but Pinduoduo failed to complete the rectification within the stipulated time limit despite initiating the rectification, triggering the conditions for penalties.

According to the E-Commerce Law of the People's Republic of China and the Provisions on the Reporting of Tax-Related Information by Internet Platform Enterprises, platform enterprises that fail to make corrections after the deadline are liable to a fine of not less than 20,000 yuan and not more than 100,000 yuan. This time, 100,000 yuan has reached the upper limit of this grade, which shows the supervision strength of the tax authorities.

These are 3 signals that cross-border sellers must read and understand

The platform is the "main body" of tax-related information reporting, while the seller is the "source of information". Once the platform data is reported to the tax authorities, every transaction of the seller will be accurately traced back to the 3 signals that determine the seller's subsequent life and death line of compliance.

Signal 1:Tax supervision into the "platform + seller" two-way penetration era in the past, the tax authorities mainly focus on the enterprise's own tax returns.

Now it's different: the platform must report the seller's tax-related information → the tax authorities have the complete transaction data → the seller's every income is "transparent", layer by layer. What does this mean? Your sales, withdrawals and transactions on the platform can be seen by the tax authorities.

Platform data vs. your declaration data, once they do not match, immediately trigger a warning." Underreporting of income" "concealment of profits" operation space, is being compressed to zero by technical means.

Signal 2:Even Pinduoduo were fined, small and medium-sized sellers should be more careful Central University of Finance and Economics, Fan Yong, Dean's words are very clear: "platform enterprises should fulfill the obligation to report information in accordance with the law, if the violation of the provisions of the requirements, will face the relevant legal risks, the circumstances are serious, the tax authorities can be heavily penalized and ordered to suspend business rectification." Interpretation: Pinduoduo such as the head of the platform, the fine of 100,000 is only a "warning education". But for small and medium-sized sellers, once the platform data does not match the declared data, they may face: back taxes + late fees, fines (up to 5 times the underpaid tax), affecting the enterprise's credit rating, and in serious cases, may be involved in criminal liability.

Signal 3:Cross-border e-commerce tax compliance, has entered the "zero tolerance" stage of the National Development and Reform Commission researcher Xu Sheng's evaluation hit the nail on the head: "The tax authorities in accordance with the law to 'Pinduoduo' to be punished, its warning and educational significance is far more significant than the amount of the fine. It is more significant to standardize the economic order of the platform and promote fair competition." Translated into vernacular, this penalty is not for the 100,000 dollars, but to set rules for the whole industry: tax compliance, none less.

Cross-border e-commerce is also under regulation, so don't hold your breath.

If your company is in need of tax compliance or difficult account handling, etc., feel free to inquire (WeChat: 13045886252)▼▼▼

If you are experiencing corporate tax compliance issues, you can refer to the Enterprise Finance Group's Tax Compliance Product Package 1 for solutions.

02 Cross-border3 Compliance Points Sellers Must Focus On

1) What tax-related information will be reported by the platform?

According to the Provisions on the Reporting of Tax-Related Information of Enterprises on Internet Platforms, platforms are required to report: operator identification information (name/enterprise name, taxpayer identification number).

Transaction amount, number of transactions, frequency. Withdrawal/settlement records. Platform service fee, commission, etc.

So cross-border sellers have to pay attention to, Amazon, eBay, speed sell pass and other platforms, also applies to similar rules, Europe and the United States tax authorities are also promoting the platform data sharing mechanism, to put it more simply, your cross-border income, is becoming transparent.

(2) How to ensure that the declared data are consistent with the platform data?

✅ Establish a complete financial record system Every order, refund and platform fee should be documented. Use professional cross-border e-commerce finance and tax software for automatic reconciliation.

✅ Regularly reconcile the platform data with the book data monthly reconciliation of sales, cash withdrawals. Found differences in time to adjust, to avoid the annual remittance of the "mine".

✅ Hire a professional cross-border tax company-such as with Enterprise Caiying Group Cross-border e-commerce involves multiple taxes such as VAT, EIT, and personal tax.

It may also involve export tax rebates, customs duties, overseas VAT and so on. Leave the professional things to the professionals, save heartache and compliance and rest assured.

3) What behaviors tend to trigger tax risks?

The following behaviors belong to the common high-risk operations, see how many of them you have hit: using personal accounts to collect money, not go to the public accounts. Serious discrepancy between sales and declared income. Long-term zero declaration or low tax burden declaration. Frequent cancellation of companies, change of subject. False invoicing, fictitious cost. Once investigated, the consequences are tax reimbursement + late payment (five ten thousandths of a percent per day), fines (0.5-5 times), inclusion in the tax blacklist, affecting loans, bidding, and exit from the country.

If you plan to register a U.S. company / Singapore company / Japanese company / Thai company / Malaysian company / Canadian company / Mexican company / Brazilian company / British company / French company / New Zealand company / Vietnamese company / Indonesian company / Dubai company and other foreign companies registered in the relevant business and taxation services, or plan to register a Hong Kong company / Shenzhen company / Guangzhou company / Shanghai company / Hangzhou Company / Beijing company / Hainan company and other domestic companies registered business services, the company annual audit audit / bookkeeping tax / payment of MPF / change of information / bank account opening / ODI record / BVI registration / tax compliance / cross-border e-commerce accompanied by running on behalf of the operation of the enterprise one-stop service, you can add my WeChat (phone with V: 13045886252) at any time to consult ↓↓↓↓ 

03 Common pain points in cross-border e-commerce tax compliance

Pain point 1: Downstream can't get tickets, costs can't be deducted

This is by far the most prevalent and almost insoluble dilemma.

• status quo::The vast majority of suppliers, small factories and individual sellers are unable to provide compliant invoices, especially VAT invoices. In order to get the goods, e-commerce companies often need to accept "no invoice price".
• dilemma::
  • Tax Points: You offer to take on the tax point to allow downstream invoicing, but this amounts to a tax burden shift and the cost is ultimately absorbed by you.
  • For individual sellers: If the downstream is an individual, even if you are willing to bear the tax points, the other party can not issue an invoice. Unless the other party specifically goes to register an individual with an authorized levy, but this is usually only possible with a general invoice.Failure to address the core VAT input credit issue. The VAT chain is essentially broken here.

Pain point 2: High advertising and marketing costs, far exceeding pre-tax deduction limits

This is a permanent pain in the heart of platform e-commerce and store group model players.

• realism::In today's high cost of traffic, almost no e-commerce business with a sizable revenue can keep advertising costs (platform promotion, live stream casting, etc.) within 15% of revenue. Especially merchants who rely on the store group model to rush volume, paid traffic is the lifeline to maintain exposure.
• policy contradiction::The tax law stipulates that the advertising and business promotion expenses incurred by general enterprises are allowed to be deducted up to 15% of the sales (business) income of the year; the excess is allowed to be carried forward for deduction in the subsequent tax year. However, for e-commerce companies whose advertising expenses often account for 20%, 30% or even higher, theSignificant excess is not deductible in the current year, which directly pushes up the current taxable incomeThis is equivalent to paying an additional tax for "buying traffic" itself.

Pain point 3: High return rates erode revenue and complicated tax treatment

This is a characteristic challenge for consumer goods e-commerce, especially in industries such as apparel and footwear.

• industry practice: "seven days no reason to return" has become the standard, clothing and other categories of return rate as high as 30%-50% is not uncommon.
• Financial and tax implicationsA high return rate means that a large portion of the recognized revenue will eventually flow back. Although it can be handled by "sales return" in accounting and tax, frequent returns bring huge workload to the practical aspects such as invoicing, offsetting, cost transfer, etc., and if it is not handled in a timely manner or in a standardized manner, it will lead to a loss of revenue.Over-recognition of income and over-payment of tax in prior periodsThe funds are unreasonably tied up.

If your company is in need of tax compliance or difficult account handling, etc., feel free to inquire (WeChat: 13045886252)▼▼▼

If you are experiencing more difficult corporate tax compliance issues, you can refer to Enterprise Finance Group's Tax Compliance Product Package II for solutions.

04 The Compliance Dilemma: Where are the Profits After Regulation?

These three pain points stack up to create a harsh reality:Once tax compliance is strictly enforced, many e-commerce companies will have to pay high taxes on the portion of their profits that is "not their true profit".

Let's take an e-commerce company with a pure store model as an example of a short account:

Assume that its merchandise gross margin is only 15% (which is not uncommon in competitive platform e-commerce).

• value-added tax (VAT): At the rate of 13%, if there is a significant shortfall in input votes, VAT will be payable on almost 13% of sales.
• surplus after tax: 15% of gross profit, after deducting 13% of VAT, leaves only 2%.
• corporate income taxThe "gross profit" of $2% has to be deducted from operating expenses (of which a large number of non-billable expenses and over-limit advertising costs are not deductible), and the final book profit may be minimal or even negative, but after tax adjustments, the taxable income may still be very high.

Therefore, e-commerce tax compliance is not as simple as simply making the accounts "beautiful" and importing the water into the bookkeeping software. Rough "standardization" may lead to an embarrassing end: the account is standardized, but the company has lost its ability to survive due to excessive tax burden. 

This is particularly fatal for owners of store clusters where margins are already thin and turnover is based on scale.

Corporate High Risks and Response Strategies

1) Three major high-risks (e-commerce / anchor focus on vigilance)

typical exampleAn e-commerce company's sales in April 2026 had exceeded 5 million, but because of the delay in pushing data from the platform (on a quarterly basis), the overrun was only discovered in July: it was necessary to correct the VAT declaration for April-June and pay three months of additional tax at 13% instead of the original small-sized 1%, and the profit margins were seriously compressed.

2) Corporate Response StrategiesCore Portfolio:Internal finance team (focusing on internal bookkeeping) + external year-round tax consultant (professional guidance, regular compliance checks, training for finance staff).Necessity:Under the upgrading of tax administration, it is difficult for a single internal finance team to cover the full dimension of compliance needs, and external consultants can make up for the shortcomings of specialization, which is the most economical compliance solution. If your company needs tax compliance or more difficult account processing, etc., you can always consult (WeChat: 13045886252)▼▼▼▼

If you are experiencing a particularly difficult corporate tax compliance issue, you can refer to Enterprise Finance Group's Tax Compliance Product Package III for a solution.

05 Breakthrough Ideas: Finding a Balance Between Compliance and Survival

Since tax-related information reporting is a major trend and the road to compliance must be traveled, the key is:How do you find a solution that meets regulatory requirements while allowing e-commerce businesses to pay taxes and retain profits?

This requires planning and optimization at an integrated level of business model, tax structure and financial management:

1）Business Re-engineering and Supply Chain Sorting::

Revisit the upstream supply chain to find a new balance between price and compliance. Gradually replace key suppliers with partners who can provide compliant tickets, even if the cost of purchasing goes up slightly, but obtaining deductible input tickets can recover from the overall tax burden.

2) Main design and tax planning::

According to the segmentation of business segments (e.g. cross-border platforms, store groups, live streaming with goods, offline sourcing, etc.), rationally utilize the tax policies of different market players (e.g. preferential policies for small and micro enterprises, individual businessmen and women), and carry out a conglomerate or matrix layout. For segments with high non-invoiced expenses such as Darren Carrying Goods, explore modes such as settlement through compliant platforms to convert labor remuneration into purchasing costs that can be invoiced.

3) Accurate accounting and account management::

Establish a financial accounting system that is highly compatible with the e-commerce business. Especially for the characteristic items such as return, promotion fee, platform fee, etc., carry out refined account processing and tax preparation to ensure the data is accurate and avoid overpayment of unjust tax.

4) Policy Research and Compliance Innovation::

Pay close attention to and study tax policies and local financial support policies for new businesses such as e-commerce and live broadcasting. Under the premise of legal compliance, make good use of various tax incentives and approved levies and other tools.

If you plan to register Shenzhen company / Guangzhou company / Shanghai company / Hangzhou company / Beijing company / Hong Kong company / Hainan company and other domestic company registration of the relevant business tax services, but also to provide the United States company / Canadian company / Mexican company / Brazilian company / United Kingdom company / French company / New Zealand company / Japanese company / / Singapore company / Thai company / Vietnamese company / Malaysian company, and other foreign companies Company registration related business tax services, company annual review / bookkeeping tax / payment of MPF / change information / bank account / ODI filing / cross-border e-commerce accompanied by running on behalf of the operation of the enterprise one-stop services, etc. can be found in the enterprise CaiYing Group for, welcome to consult me (WeChat with the same number: 13045886252), or [Scan the following two-dimensional code] to match your needs, there will be a professional tax consultant with you in detail! Communication ↓↓↓  

06 Real-life examples of tax compliance at Enterprise Finance Group

07 Why choose Enterprise Caiying Group?

🏆 Why choose Enterprise Finance? --Professional strength, global trust

Enterprise Caiying Group, since its establishment in 2015, has always been adhering to the mission of "empowering every entrepreneurial dream", focusing on providing one-stop globalized industry, commerce, finance and tax and business services for enterprises.

Our bottom line, from the deep precipitation and authoritative certification:

✅ Service Scale Witnesses Reputation: Accumulated services for more than 300,000+ enterprises, long-term cooperation with more than 50,000+ customers.

✅ Global Network Local Support: Branches are set up in Beijing, Guangzhou, Shenzhen, Hong Kong, Southeast Asia, and the United States, with services covering Asia, Europe, and the Americas.

✅ Official certification qualification escort: with 3 Hong Kong government certified licensed secretarial firms, a U.S. branch and a self-employed Hong Kong accounting firm, and at the same time is the vice president of the Shenzhen Agency Bookkeeping Association, etc., to ensure that the service is fully compliant and reliable.

The four core advantages of Enterprise Caiying's overseas company registration service:

🔹 1. A team of experts to guide you throughout the process

Our team of nearly 400 professionals consists of senior lawyers, accountants, tax accountants and cross-border business consultants. They are well versed in international regulations, handle thousands of high-end cases annually, and can provide optimal customized solutions from structural design to on-the-ground implementation.

🔹 2. digitally empowered, smart and efficient

We have spent 20 million RMB to research and develop our own digital system "Echobo", which realizes process standardization and progress visualization. The integration of AI intelligent analysis can provide quick insight into demand and assist in generating solutions, making complex affairs clear, transparent and efficient.

🔹 3. Eco-links, extra value

We connect over 500,000+ entrepreneurs with domestic and international associations. By regularly organizing cross-border salons, tax law seminars and other activities, we not only solve registration problems, but are also committed to linking resources and creating business opportunities for you.

🔹 4. Full-cycle accompaniment for worry-free sailing

Our services go beyond "successful registration". We provide a full life cycle of services from early consultation, mid-term implementation, to late financial and tax declaration, annual audit and maintenance, and compliance consulting, to become your long-term and stable partner for overseas expansion.

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Content Editor: This article was edited and designed by the Operations Department of the Enterprise Caiying Group.

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