China - Tax on overseas purchases changes
China is tightening its grip on cross-border e-commerce, imposing a new tax system on overseas purchases that form a growing business catering to Chinese consumers with an appetite for foreign goods.
The changes, announced by the Finance Ministry in March, include raising the so-called parcel tax that is currently imposed on foreign retail products that e-commerce firms ship into China.
Such goods sent directly to consumers will now be treated as imports and will be subject to tariffs and value-added and consumption taxes, whose rates vary depending on the type and value of goods. The Ministry said the changes, which became effective on the 8th of April, are intended to put foreign and domestic products on an equal footing... Read More