What taxes are paid for cross-border purchases
Starting from the first half of this year, overseas purchases are no longer completely tax-free for items below 500 yuan. At present, there is also a lot of discussion about the overseas purchase tax payment of major e-commerce companies. Below is the knowledge about what taxes to pay for cross-border purchases that the editor brings to you. Welcome to read.
JD: 99 yuan free shipping, tax rate 11.9%
As one of the leading enterprises in the domestic e-commerce field, I have always been not enthusiastic about the overseas purchasing market. But with the gradual intensification of market competition, JD.com has also begun to focus on the overseas purchasing market and innovatively provide JD Global Purchase as a self operated channel. At present, the free shipping threshold for JD Global is not much different from traditional self operated, with two free shipping options of 99 yuan and 79 yuan. Among them, there are four types of members, including registered members, bronze medal members, silver medal members, and gold medal members, who can purchase JD Global self operated products with a total order amount of 99 yuan or more for free shipping. As for the two higher-level members, Diamond Member and Enterprise Member, the free shipping threshold is that a single order with a total amount of 79 yuan can be free of charge.
As for JD Global's tax and fee details, you can find them in the tax and fee introduction for each product. According to official information from JD Global, the Ministry of Finance, the General Administration of Customs, and the State Administration of Taxation have issued cross-border retail import tax policies. Starting from April 8, 2016, the single transaction limit for cross-border e-commerce is RMB 2000, and the annual transaction limit for individuals is RMB 20000. The comprehensive tax on cross-border e-commerce needs to be levied at 70% of the general trade value-added tax and consumption tax amount, which will be collected and paid by JD Global Purchasing Agency, and the tax amount will be based on the settlement page amount. Specifically, mainstream overseas purchased goods such as milk powder, diapers, health products, food, personal care, 3C (computer, communication, and consumer electronics), clothing, and light luxury goods generally have a tax rate of 11.9%. That is to say, to purchase a 100 yuan product, an additional tax of 11.9 yuan is required, but rapeseed oil, olive oil, flaxseed oil, and natural honey in the food are specially "taken care of" goods, with a tax rate of only 9.1%. As for cosmetics for lips, eyes and nails, cosmetics, color makeup, perfume and other products in cosmetics, they are particularly "severely punished", with the tax rate as high as 47%. In addition, watches with a dutiable price of 10000 yuan or more also have a tax rate as high as 32.375%. Finally, it should be noted that currently, most of the products on JD Global Buying and Self operated Channel are shipped from bonded areas and not from overseas. That is to say, JD.com Global Buy first imports goods in large quantities into domestic bonded zones, and then splits and ships them according to different consumer orders.
Suning Duty Free Shop: Free Shipping and Tax, Duty Free Weiwu
As the earliest e-commerce company to enter the overseas purchasing market in the domestic e-commerce field, Suning.com's early self operated products were mainly based on Suning.com Hong Kong flagship stores, and its free shipping policy was not much different from Suning.com's traditional self operated products. But since the change in overseas purchase taxes on April 8, 2016, Suning's flagship store in Hong Kong has been completely closed for renovation, replaced by Suning's self operated duty-free overseas purchase store. From the current perspective, the biggest difference between this store and JD Global Purchase Self operated Channel is the free shipping tax. Taking the most common products purchased from overseas, such as diapers and milk powder, as an example, most of them come with two options: one free shipping or three free shipping. A free shipping item usually costs less than a hundred yuan to get it to your home, and three free shipping items can also get it to your home for only two to three hundred yuan. However, it should be noted that as it is an overseas purchasing channel, it is still necessary to comply with the national regulations of a single cross-border e-commerce transaction limit of RMB 2000, and an individual's annual transaction limit of RMB 20000. If the limit is exceeded, it is best for consumers to borrow their family and friend ID cards to place separate orders, in order to complete larger overseas purchase transactions. And similar to JD Global Buying and Self operated Channel, most of the products at Suninghai Overseas Buying and Self operated Duty Free Shop are also shipped from bonded zones, so the delivery speed is still relatively guaranteed.
Additionally, it should be noted that a few of the products purchased from Suninghai's self operated duty-free shops are shipped from overseas, but they are also a service commitment that includes postage and taxes. If consumers purchase goods that require additional customs duties, they must keep the tax invoice and contact customer service for full reimbursement.
Amazon China: Relying on the United States, calculating taxes and fees on a single basis
Unlike other domestic e-commerce platforms, Amazon China's overseas purchasing channel is backed by Amazon's US headquarters. The biggest feature of this overseas shopping channel is that it comes 100% from Amazon in the United States, and there is no need for purchasing agents or shipping links. Including high-quality product recommendations, selecting best-selling products from Amazon in the United States, and recommending high cost-effective and high-quality overseas products to consumers, the prices of the products are consistent with those on the Amazon website in the United States. And we use international logistics for overseas direct shipping, with direct shipping from Amazon in the United States. The delivery logistics are stable and reliable, and it can be delivered in about two weeks. Some products can be delivered within three working days. And provide a shopping experience in all Chinese, sweeping language barriers. The all Chinese page will help users quickly and easily complete the ordering process. There is also a local customer service team in China that provides comprehensive and professional question answering and after-sales service for users.
However, it should be noted that Amazon China's overseas purchasing channel does not include taxes or shipping, and the customs duties and shipping costs for each item are calculated separately, And it will be displayed in the form of "estimated shipping cost and import tariff" in the product price details. The advantage is that collecting tariffs on behalf of others can be easily paid, and the principle of refunding more or not paying less is adopted. Specifically, if the actual amount of the tariff does not match the amount collected, the excess amount will be refunded to the user's overseas purchase account, and the shortfall will not need to be paid by the user. The only thing to note is that you need to provide your ID information, otherwise you will not be able to declare your personal belongings for entry. In addition, after clicking "Buy Now", consumers also need to log in or register for an Amazon US account, and the shipping address needs to be written in English. As for the specific tariffs and total shipping costs, they are not cheap. Taking the milk powder that is often involved in overseas purchases as an example, although the large packaging of 4 or 6 cans is cheaper than in China, it needs to pay 30% to 40% of the total price of the product as customs duties and shipping fees. Therefore, the total price is actually more expensive than in domestic e-commerce. Therefore, it is best to wait until the Amazon US headquarters has a big sale to make a more cost-effective decision.
Tmall Global: Different shipping costs and the same tax rate
Compared with the three e-commerce platforms mentioned earlier, Tmall Global, the overseas shopping channel of Tmall Mall, has a tax rate that is closer to JD Global, requiring consumers to pay tariffs themselves. As for the specific tax and fee standards, they are also very similar to JD Global Shopping. Each product will have different tax rates depending on its category, but the tax rate for most products is 11.9% of the total order amount. On the other hand, the shipping cost on Tmall Global is completely different from that on JD Global. Due to the fact that most of Tmall Global's products are not self operated but sold by third-party franchise stores, the shipping fee template and free shipping threshold are completely different. A few products can even be shipped home for 9.9 yuan like Taobao stores, while most products require a certain shipping fee.
Additionally, it should be noted that most of Tmall Global's products are shipped from domestic bonded zones and offer a service commitment to compensate for delayed delivery within 7 days. A few products are shipped overseas, and the logistics time for product transportation is no longer guaranteed.