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    The EU'S Abolition Of Cross-Border Tax Exemption Does Not Cause A Fatal Blow To Chinese Businesses.

    2016/12/8 15:30:00 90

    EUCross Border Tax ExemptionChina Market

    Recently, the European Commission (EuropeanCommission) announced a series of measures to improve the value added tax (VAT) environment for e-commerce operations in the EU.

    The European Commission said that these measures will help businesses, especially start-ups and SMEs, sell goods and services online more easily, and help consumers more conveniently consume online.

    According to the information released by the European Commission, the new measures mainly include the following four aspects: first, the establishment of new VAT regulations for online physical pactions and service pactions; second, simplifying the VAT payment rules for small businesses and start-ups; third, new measures to solve the fraud in cross-border VAT; fourth, electronic books and Book products or adopting a unified VAT taxation rules.

    The committee also said that by introducing

    European Union

    Within the scope of the online value-added tax to pay one-stop service, enterprises operating in the EU will save a total of 2 billion 300 million euros a year in value added tax to pay administrative expenses.

    The new rules will also ensure that VAT is paid in the EU member states where the final consumer is located, thereby ensuring a more equitable distribution of Taxes between EU countries.

    In addition, the plan will help EU Member States to collect value-added tax revenue up to 5 billion euros per year from online pactions.

    According to the committee's forecast, the tax on online pactions may reach 7 billion euros by 2020, which is one of the reasons for the proposed measure.

    In fact, this is not the first time European countries have focused their attention on

    Cross-border electricity supplier

    Taxation matters.

    This year, the British government took the lead in introducing a series of measures to solve the VAT problem.

    In March this year, the Ministry of Finance issued the regulation that tax authorities have the right to warn high-risk overseas sellers active on eBay and Amazon platforms.

    If the seller fails to pay VAT within 30 days after the warning, eBay and Amazon will be liable for tax evasion.

    Under such circumstances, eBay, Amazon, speed sell and other cross-border e-commerce platforms have responded positively, asking sellers to upload VAT tax numbers.

    For the new EU VAT regulation, most Chinese sellers are quite calm.

    Li Yang, the co founder of technology, said: "the new EU VAT rules have little impact on us."

    He disclosed that as a result of the previous export business tax revenue there is a certain gray space, some businesses will earn more profits to avoid tax revenue.

    However, it is believed that with the development of cross border electricity providers, the industry will go to the direction of "photochemical" and "standardization". Therefore, before the VAT new deal, we have always paid taxes in accordance with the law, and put the cost into consideration.

    It is the first cross-border listing on the new three boards in China.

    Exit

    Electricity supplier enterprises, sales in 2015 amounted to 114 million yuan.

    Another fast selling TOP seller Bluedio also expressed optimism about EU VAT's new deal.

    Li Jiacheng, head of Bluedio marketing department, told reporters that Bluedio had been paying about 20% of the consumption tax in accordance with EU regulations.

    Because the target business involves many European Union countries, Bluedio will be declared to different countries on a quarterly basis.

    If the new regulations are implemented, the EU's unified taxation will save part of the labor cost for enterprises.

    Li Jiacheng also said that the introduction of the new EU VAT regulations has dealt a blow to those businesses that have reduced prices and evade taxes in exchange for profits, which has purify the market environment.

    It is not hard to see that for most of the compliance businesses, the new EU VAT rules do not affect the cross-border export electricity supplier industry.

    But it is undeniable that there are still a certain number of businesses on the market that rely on lower prices.

    However, with the further tightening of tax policies for cross-border electricity suppliers, businesses must embark on the path of formal management.

    "Made in China" should focus on products and brands and win the corresponding profit margins.

    For more information, please pay attention to the world clothing shoes and hats net report.


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