China changes online import tax rules
From our branch IC&Partners Asia
The e-commerce is and will remain for next years one of major driver of Chinese economic growth, as internet penetration and smartphone use continue to increase.
In particular, in the last years, improving technology has supported the trend for China’s consumers to shop online products from abroad.
On March 24, 2016, the Ministry of Finance of the People’s Republic of China announced that from April 8th an important change of tax rules will affect the imported goods that are sold online in order to reduce the tax advantages compared to taxes on the traditional off-line imported goods.
This new tax policy will remove the special tax, so-called parcel tax, that was previously levied on imports sold online (equal, in most cases, to 10%); instead, Chinese government will charge 17% VAT and consumption duties (according the taxation imposed by Chinese laws on that product).