China to cut import tax on some online retail purchases
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China will cut import taxes on some online retail purchases starting April 8, the finance ministry said on its website on Thursday.
Goods with a value of 20,000 yuan (US$3,070) or less bought online and shipped into China would no longer be subject to customs duty, the ministry said.
Imports of goods bought online had previously been subject to customs duty, consumer tax and value-added tax, according to the ministry’s statement. The tax due will now also be capped at 70 percent of the applicable consumer tax and VAT.
Goods worth more than 20,000 yuan would be liable for the current general trade tax, the ministry said.
Questions & Answers
Q.When do these new import tax changes for online retail purchases come into effect?
When do these new import tax changes for online retail purchases come into effect?
The finance ministry announced that China will begin cutting import taxes on some online retail purchases starting from April 8. This change was announced on Thursday by the ministry.
Q.What is the maximum value of goods that will be exempt from customs duty under the new rules?
What is the maximum value of goods that will be exempt from customs duty under the new rules?
Goods bought online and shipped into China with a value of 20,000 yuan, equivalent to US$3,070, or less, will no longer be subject to customs duty. This exemption applies to qualifying online retail purchases.
Q.What taxes were previously applied to goods bought online and imported into China?
What taxes were previously applied to goods bought online and imported into China?
Previously, imports of goods bought online were subject to customs duty, consumer tax, and value-added tax. The finance ministry's statement confirms these were the applicable taxes.
Q.What happens if online retail purchases are worth more than 20,000 yuan?
What happens if online retail purchases are worth more than 20,000 yuan?
Goods exceeding 20,000 yuan in value that are bought online will still be liable for the current general trade tax. The new tax cap and duty exemption do not apply to these higher-value items.
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