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China e-commerce tax plan for 2015

  • Sep 28, 2014 | Richard Asquith

China e-commerce tax plan for 2015

China is reviewing the introduction of tax on online sales of goods, e-commerce, in 2015. The plan would include a tax system administered by e-commerce platforms in the world’s biggest online shopping economy.

There is widescale non-disclosure of taxable revenues by Chinese traders on e-commerce sites such as Alibaba, and the State Administration of Taxation (SAT) want to eliminate this wide scale tax evasion through a tax around payments.

This will require online site and e-commerce platforms to incorporate tax calculations, and potentially act as the state’s tax collector on e-retailers.

Chinese VAT reform

Chinese VAT is in the middle of an extensive reform programme, which commenced in 2012 with a pilot. It went country-wide in 2013. A number of industries (e.g. financial services, retail and construction) are still operating under the old VAT and Business Tax regimes.

VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which won International Tax Review's 2020 Tax Technology Firm of the Year. Richard trained as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.