It is not easy to levy tax for e-commerce

Some experts estimated that up to 2002, China e-commerce business revenue has reached ï¿¥10 billion, which is a good opportunity and a severe challenge for china tax industry development. On one hand, ecommerce has been a catalytic agent for economic development and it is sure that China business development is driven greatly and tax is also increased largely as a consequence. On the other hand, current tax levy principle is based on real shop or store transactions, which is not suitable for ecommerce development so there are many problems for tax levy on ecommerce. Ecommerce is movable and ecommerce could be easily hidden so there must be one unique code for ecommerce tax payer, which is within national standards. Tax payers need to submit information, including websites, website ip, goods posted on the websites, and transaction payment tools, online bank account for registration in tax bureau. Tax levy range should be expanded and goods products transactions and labor services business should also be covered. Now three payment tools are popular, customers account payment, credit card payment, e-currency payment. So tax levy may be processed on online banking payment settlement. If there is transaction payment, consumers’ residential local bank takes charge of deduct value added tax and pay tax to the local tax bureau. It can assure that tax can be collected on time and it can prevent tax evasion. IBUonline is an innovative B2B portal and IBUonline pay attention to ecommerce tax policies in China. If you have interest in B2B business and are developing foreign trade on B2B platform, please go to IBUonline homepage to register for free.