December 31 2019

State Council Grants Exemptions on Value-added Tax and Consumption Tax for Cross-border E-commerce Transactions

Announcement by State Administration of Taxation (SAT)

The State Council recently released the Approval of Establishing Pilot Cross-border E-commerce Zones in 24 Cities. Preferential tax policies will be introduced for retail and exported goods, including exemptions on value-added tax and consumption tax.


Details about how to establish and operate these cross-border e-commerce zones will be worked out by provincial governments. Relevant departments are mandated to develop and optimize information management systems and provide electronic information to regulatory authorities, submit work plans and experiences to the Ministry of Commerce, and strive to make new progress and breakthrough in developing the cross-border e-commerce market and building a sound framework to sustain the market development.