Ecommerce tax issue is controversial

Some people think that all the business should be treated equally and the online business needs to pay tax as real shop business.

While other people think that ecommerce can be scrapped from tax since it could maintain low price advantage for online shops and it is not easy to identify all the online shoppers.

A report revealed that a company has sold clothes very well on online market but it has been levied more than 4.3 million yuan ($665,000) tax.

Will the move lower the online businessman’s efficiency or drive them to increase the price of the products they sell on the internet? And then, consumers will go back to visit real shops rather than online shops.

The big trend is more and more people starting online shopping and more and more companies seeking customers on the internet and some has succeeded in online foreign trade business now.

In order to meet the trend, the national government has started to take measures to support online business and trade.

Once the government imposes tax on Internet transactions without any deductions or exemptions, it will become difficult for many online businesses to survive, especially for some medium and small sized companies.

Furthermore, current tax policy is not applicable for ecommerce.

IBUonline is an innovative B2B portal and it has kept an eye on ecommerce tax policy in China.

If you are developing foreign trade on B2B platforms, you can go to IBUonline homepage to register as a member. IBUonline has launched foreign trade entrustment service and easy order service to help foreign trade.