In the era of tax exemptions for the “sea peddlers”, the media claimed a minimum tax of 11. 9 per cent for a sea peddler。
Three ministries, namely, the ministry of national finance, jointly issued a circular on the implementation of a new tax policy by cross-border electric operators as of 8 april。
Retailed imports of goods for cross-border e-commerce will no longer be subject to postage taxes based on mail items, but rather to customs duties and import chain value-added taxes and excise taxes. The 50 yuan tax exemption was abolished。
Prices of milk powder, imported food, etc. Have risen, with a minimum tax of 11. 9 per cent
As a result of the new tax deal, many imported commodity prices have risen, with food, mother and child commodities bearing the brunt. As most of the unit prices for food, mother and child commodities are below $500, the overall rate for such commodities has increased。
In the case of imported milk powder, according to the original algorithm, the amount of the transaction is exempt from tax if it is less than $500 and the post tax is paid at 10 per cent after more than $500. However, 11. 9 per cent (17 per cent and 17 per cent* about 11. 9 per cent) of vat is currently required。
It's 500 bucks worth of milk powder
Before the new deal: tax is zero. Total price is $500
Post-new deal: 11. 9% tax
Total price is 500+500*11. 9% = $559. 5
It's cheap for electrical appliances, personal cleaning
Some of the commodities are cheaper after the new tax policy。
For example, imported clothing, which itself was not subject to excise taxes, was previously subject to a postage tax of 20 per cent and, after the new deal, tax rates were reduced by 8. 1 per cent。
There are also 3c electrical and personal cleaning commodities with higher tax rates on home mail. Because of the 50 per cent tax on the use of postage for skin care, the value added tax rate is only 11. 9 per cent, with 38. 1 per cent less tax than before the new deal. Given that skin-care prices are generally higher, sea-pike skin-care products are actually more cost-effective。
The limit for personal annual transactions is $20,000
Under the new deal for taxes, cross-border electricians retail imported goods, with an individual annual transaction limit of $20,000, a single transaction limit of $2,000, and a full levy on general trade in excess of the restrictions. While duty-free and tax-discounted within the limits, in theory, a sea poaching commodity is subject to vat and excise tax, so the minimum tax is 11. 9 per cent. This means that former duty-free commodities have completely disappeared。
In addition, the transaction limit of $20,000 per year is not suitable for all. Ms. Zhan, who was a regular fisher, said that because the child was small, she needed to buy milk powder and some mother-and-child items on a regular basis, and that the amount of $20,000 a year was clearly insufficient。
In an interview with don hinghong, an expert member of the research centre of the china electronic commerce association, stated that the restrictions on trade volumes had a negative impact on fishing for luxury goods of high value and that the purchasing power of that part of the country would be curtailed。
The fourth and third levels of the post tax
In addition to cross-border electrician platforms, a significant proportion of individual fishing is carried out by direct mail or trans-shipment from foreign shopping sites. In parallel with the implementation of the new deal for revenue from transborder electricians, the post tax has been adjusted to be in three tranches, at 15, 30 and 60 per cent, respectively. Originally, the rate was set at 10 per cent, 20 per cent, 30 per cent and 50 per cent, respectively。
Does tax change have a major impact on consumers
How will consumers feel about this cross-border powerer tax change? Analysts argue that the tax policy has had little impact on consumers seeking brand credit, because one of their main motivations is to keep the money, and as long as the price of the goods is not too obvious, they still opt for it。
"the fisher" consumer: "the fisher, not the price, the quality."。
Ms. Liu: in 11. 9 per cent, i. E., $12 more than $100, i think it makes no difference, because it's much cheaper than the domestic price, and it's the equivalent of a third or a quarter of the domestic price。
Mr. Rowe: i'd rather go to hong kong if it's a good deal, and macao if it's a good deal. If it's a good deal, it's a good deal。
According to the new deal for taxes, retail imports of personal goods that are not retailed by cross-border electricians, as well as cross-border e-commerce imports that do not provide electronic information such as transactions, payments, logistics, etc., are implemented in accordance with existing regulations. The analysis therefore indicates that this has had little impact on the individual purchasing patterns of non-cross-border electric operators。
The view was also expressed that, as cross-border electricity operators taxed their land, a number of commodities with higher tax rates (e. G. Milk powder, snacks, etc.) were re-purchased by individuals。
In response, the expert stated that this would depend primarily on the profit space available for personal replacements, and that subsequent developments would have to be tested in time. “however, if the new tax policy were implemented in parallel with a tightening of customs controls, it would be difficult for individuals to buy on their behalf.”
Which one is more cost-effective
The 15 per cent tax on postage, including computers, cameras, food, beverages, toys, games, etc., is exempt from the tax of $50, so that the amount of goods taxed is $333, and personal fishing is still more economical。
The 30 per cent tax on postage, comprising clothing, bicycles, cameras, etc., is only 166. 67 yuan. Assuming the purchase of a 1,000-dollar camera, the postage tax to be paid by an individual “sea peddler” is $300, while the combined rate to be paid for retail imports by a cross-border electrician is 17 per cent of the value added tax, with a single purchase of up to 2,000 dollars free of duty and a combined rate of seven discounts, calculated at 119 dollars, which is $181 less than a personal peddler。
Annex: list of retail imports by cross-border electricians
Eleven departments, including the ministry of finance, publish lists of retailed imports of cross-border electronic commerce. The list includes 1,142 commodities that will be subject to customs duties and import value-added tax, excise tax and no further post taxes. Goods outside the list continue to implement general trade tax policies or post taxes。
