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Cross-Border E-Commerce Tax in China: 2026 Guide

⚠️ Disclaimer: For general information only β€” not tax, financial, or legal advice. Figures may be outdated or incorrect; tax rules change frequently. Verify important decisions with the CRA/IRS or a qualified professional. You use this information at your own risk.
The short answer

Selling into or out of China through e-commerce platforms puts you in a special tax world with its own customs codes, its own import tax formula, and β€” for exporters β€” a simplified income-tax regime. The two directions are mirror images: imports get a discounted "comprehensive tax," while small exporters can use a flat deemed-profit rate instead of full bookkeeping. This guide covers the 2026 rules.

Customs supervision modes: the four codes that matter

China Customs assigns a numeric code to each clearance model. For e-commerce:

CodeNameWhat it is
9610Cross-border trade e-commerce (B2C direct mail)Business-to-consumer retail export/import; "release by manifest, declare in aggregate"
9710Cross-border e-commerce B2B direct exportDomestic company sells via platform directly to an overseas business
9810Cross-border e-commerce export via overseas warehouseGoods shipped to an overseas warehouse first, then sold via platform
1039Market procurement tradeBuying at designated wholesale markets; single declaration capped at USD 150,000
1210Bonded e-commerce importB2C retail imports through bonded zones
0110General tradeThe default traditional-trade code

The practical split: 9610 and 1210 are B2C (retail, business-to-consumer); 9710 and 9810 are B2B (business-to-business). This matters because the income-tax simplification below only applies to B2C retail exports (9610/1210), not to 0110 or 9710.

Retail import tax: the 70% formula

Cross-border retail imports are taxed as goods (not parcels). The buyer is the taxpayer; the platform or logistics company withholds. Since 1 January 2019 (MOF/GAC/STA [2018] No. 49):

ItemRule
Single-transaction limitRMB 5,000
Annual per-person limitRMB 26,000
Within limits: customs duty0%
Within limits: import VAT and consumption tax70% of the statutory amount

The comprehensive tax formula:

> Tax payable = dutiable value Γ— [(VAT rate + consumption-tax rate) Γ· (1 βˆ’ consumption-tax rate)] Γ— 70%

Example: a RMB 1,000 cosmetic (VAT 13%, consumption tax 15%) within limits. Tax = 1,000 Γ— [(13% + 15%) Γ· (1 βˆ’ 15%)] Γ— 70% = 1,000 Γ— 32.94% Γ— 70% β‰ˆ RMB 231. Over the limits β€” or a single indivisible item above RMB 5,000 β€” the shipment is taxed as general trade at full rates.

Export side: VAT treatment and income tax

VAT: retail exports that lack valid purchase invoices can use the "no-invoice, tax-exempt" (ζ— η₯¨ε…η¨Ž) treatment β€” no VAT levied, but also no rebate to claim. This is the common path for small sellers sourcing without special VAT invoices.

Corporate income tax β€” deemed assessment: for retail exporters in a cross-border e-commerce comprehensive pilot zone (η»Όθ―•εŒΊ) that meet three conditions (registered in the zone and logged on its service platform; declared through the zone's customs; no valid purchase invoices with VAT/consumption tax exempted), the tax bureau may assess CIT using a deemed profit rate of 4% of revenue instead of audited books (STA Announcement [2019] No. 36).

A RMB 5 million export-revenue example at 4%: deemed profit = 200,000; as a small enterprise at the 5% effective rate, CIT = RMB 10,000 β€” versus RMB 1 million on the same profit at the 25% standard rate under full bookkeeping.

Transition timeline to know: for legacy business that could not properly account costs, tax bureaus allowed after-the-fact deemed assessment at 2% for business through 30 September 2025 and 4% for October–December 2025. Industry guidance points to full books-based filing from 2026 onward for new business β€” confirm the current position with your local bureau, as local practice varies.

The 1210 bonded-import model

The mirror image of export is the 1210 bonded-import model for selling foreign goods to Chinese consumers: goods are shipped in bulk to a bonded warehouse inside a pilot zone, then cleared parcel-by-parcel as consumers place orders. Each parcel is treated as a cross-border retail import under the same 70% comprehensive-tax rule above. The advantage is speed β€” domestic delivery in days instead of weeks β€” at the cost of warehousing and the need to forecast demand. The 1210 model only operates inside approved cross-border e-commerce pilot zones.

The "three orders" rule

Customs releases cross-border retail shipments only when the three data streams match: the order information from the platform, the payment information from the payment provider, and the logistics information from the carrier. Mismatches β€” a classic problem when sellers use personal accounts for business receipts β€” cause clearance failures. Route all three through properly registered business accounts from the start.

The 1039 market-procurement option for small exporters

Sellers sourcing from wholesale markets (Yiwu is the famous example) can use the 1039 market-procurement model instead of 9610. Its signature advantage: qualifying operators can export without purchase invoices and VAT-exempt, which suits small traders buying from market stalls that cannot issue special VAT invoices. The trade-off is the USD 150,000 cap per declaration and the requirement to operate through a designated market cluster with a qualified export agent. For mixed sourcing β€” some invoiced, some not β€” many sellers split shipments between 9610 (invoiced goods, rebate possible) and 1039 (uninvoiced goods, exempt).

Next steps

  1. Pick the right customs code before you ship β€” 9610 vs 9710 vs 9810 determines both clearance and which tax simplifications you can use.
  2. If you sell into China, build the 70% comprehensive-tax formula into your landed-cost model and watch each buyer's RMB 26,000 annual cap.
  3. If you export B2C from a pilot zone without purchase invoices, register on the zone's platform and keep the "three orders" (order, payment, logistics) aligned β€” that is what unlocks the 4% deemed rate.
  4. For 2026, assume books-based filing for new export business and keep clean revenue records from day one.
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