Recently, a series of new regulations have emerged in the field of China's cross-border e-commerce, injecting new impetus into the industry's development.
On December 25, 2024, the "Value-Added Tax Law of the People's Republic of China" was passed by the 13th meeting of the Standing Committee of the 14th National People's Congress and will come into effect on January 1, 2026. This law clarifies that units and individuals selling goods, services, intangible assets, real estate within the territory and importing goods are value-added tax payers. For cross-border e-commerce enterprises, goods stored within the territory and shipped overseas are required to pay value-added tax. However, the new law provides a simplified tax calculation method for small-scale taxpayers, reducing the tax burden on small cross-border e-commerce enterprises.
In terms of policy support, at the State Council Policy Routine Briefing on November 22, Vice Minister of Commerce Wang Shouwen stated that the Ministry of Commerce will vigorously develop cross-border e-commerce to empower industrial belts, and relevant clauses have been incorporated into recently signed and upgraded free trade agreements. The Ministry of Commerce will also cooperate with relevant departments and localities to track the operation of foreign trade and encourage platforms and leading enterprises to cooperate with the local characteristic industrial belts in 165 cross-border e-commerce comprehensive pilot zones.
In 2024, there were also several policies to boost the development of cross-border e-commerce. For example, the State Taxation Administration issued guidelines on tax policies for stabilizing foreign trade and foreign investment; the Ministry of Commerce introduced the "Negative List of Special Administrative Measures for Cross-border Service Trade" and the "Three-year Action Plan for Digital Commerce (2024 - 2026)"; nine departments including the Ministry of Commerce issued the "Opinions on Expanding Cross-border E-commerce Exports and Promoting the Construction of Overseas Warehouses"; the General Office of the State Council issued the "Opinions on Promoting the High-quality Development of Service Trade with High-level Opening-up".
The introduction of these new regulations has brought new development opportunities for cross-border e-commerce enterprises and provided a strong guarantee for the sustainable and healthy development of the industry.
