Does Shopee need to pay taxes for cross-border e-commerce?

We know that Shopee has a relatively low entry threshold, and Shopee does not require platform usage fees, annual fees, or deposits, making it very suitable for novice merchants to open stores. So does Shopee’s cross-border e-commerce need to pay taxes? Next, we will explain this aspect to you.

Cross-border e-commerce does not need to pay value-added tax. According to the announcement of the State Administration of Taxation on the re-issuance of the "Administrative Measures for the VAT Exemption of Cross-border Taxable Services in the Reform of Business Tax to VAT (Trial)":

All income from cross-border services obtained from abroad is not subject to value-added tax.

According to the announcement of the State Administration of Taxation on the re-issuance of the "Administrative Measures for VAT Exemption for Cross-border Taxable Services in the Reform of Business Tax to VAT (Trial)":

Article 5: When a taxpayer provides cross-border services to an overseas entity for a fee, all income from such services shall be obtained from overseas, otherwise, VAT will not be exempted. The following circumstances are deemed to be income obtained from overseas:

(1) Income obtained by taxpayers from the Civil Aviation Administration of China Settlement Center, China Aviation Clearing Co., Ltd., or permanent representative offices of foreign air transport enterprises established with the approval of the Civil Aviation Administration of China for providing logistics support services to foreign air transport enterprises.

(2) A tripartite clearing company refers to a clearing company that undertakes the centralized operation and management of funds for member units within a multinational corporate group, including financial companies, fund pools, and clearing centers.

(3) Other circumstances prescribed by the State Administration of Taxation.

Article 6: Where taxpayers provide cross-border services exempt from VAT, they shall separately account for the sales of cross-border services and accurately calculate the input tax that cannot be deducted. Special VAT invoices shall not be issued for their tax-exempt income. Where taxpayers provide cross-border services exempt from VAT, they shall separately account for the sales of cross-border services and accurately calculate the input tax that cannot be deducted. Special VAT invoices shall not be issued for their tax-exempt income.

Well, today's sharing ends here. Now everyone should know whether Shopee cross-border e-commerce needs to pay taxes. In short, before merchants operate Shopee, they must understand the relevant issues of taxes in order to open a store better!