Starting today, you may be able to see lower taxes when shopping overseas on cross-border e-commerce import platforms. According to the decision of the State Council Executive Meeting last week, from April 9, individuals bringing medicines, food, electrical appliances and other commodities into the country will be subject to the new import tax (commonly known as travel tax).
It is understood that the travel tax is an import tax levied on the customs duties, value-added tax and consumption tax at the import stage on items carried by individuals or sent by mail. In order to maintain a fair and competitive market environment, the tax rates for each item of travel tax should be roughly consistent with the comprehensive tax rates of similar imported goods classified under that tax item. As of now, personal shopping overseas and direct mail products purchased through cross-border e-commerce are subject to travel tax.
This adjustment includes two aspects:
First, the tax rates of tax items 1 and 2 will be reduced from the current 15% and 25% to 13% and 20% respectively;
Second, the notes to tariff item 1 "drugs" will be amended to stipulate that imported drugs (currently including anti-cancer drugs and drugs for rare diseases) for which the state stipulates a reduced value-added tax of 3% at the import stage will be taxed according to the goods tax rate.
This is also another reduction since the reduction of travel tax on November 1 last year. It is worth noting that since the beginning of this year, the VAT rates for imported goods have been adjusted from 16% and 10% to 13% and 9% since April 1; the VAT on imported rare disease drugs has been reduced to 3% at the import stage since March 1. Industry insiders said that the successive reductions in tax rates on imported goods will have a significant positive impact on promoting import consumption and cross-border e-commerce.
