Internet shopping in China just got more expensive.
In what can only been as a move by the government to prod Chinese citizens to buy domestic goods, China said it plans to impose new tariffs on cross-border e-commerce that would significantly increase the cost of many imported items such as food, health care products and low-price cosmetics.
While it’s difficult to calculate even a guided range for taxation now given the amount of regulation and the proportion clause, it is fair to assume more will be taken out of the wallets of China’s shopping netizens – and the exporters targeting them. The explicit aim of policymakers is to try to provide a more level playing field for brick-and-mortar importers, but given the astronomic rate at which the online sector has expanded in recent years the new rules will affect one of the primary channels through which many people in China shop.
The new system doesn’t completely erase the cost advantages of e-commerce for imports of less expensive goods – transactions of less than Rmb2,000 and individuals whose cumulative purchases in a given year haven’t exceeded Rmb20,000 will enjoy a tariff rate of zero per cent. But that hasn’t kept mainland news media today from talking up the end of a “duty-free era” for import shopping platforms like Alibaba’s Tmall International, and tipping low-cost cosmetics, maternity and child-care products and luxury goods as the categories of foreign goods likely to be hardest hit.
The European Chamber is delighted to have Mr. Mark Cormack, Senior Tax Manager at Ernst & Young as he present the specifics of this new regulations.
AGENDA
9:00 to 9:30 Registration
9:30 to 9:40 Welcome Remarks
9:40 to 10:10 New E-commerce Tax Explained by Mr. Mark Cormack, Senior Tax Manager at Ernst & Young
10:10 to 11:00 Q&A Session
Payment:
You can pay at the day of the event using cash or local debit/credit cards. The European Chamber can give you an official fapiao for amount exceeding 200 RMB, and this will be sent to you via courier a few days after the event.
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