Sou Hu Cai Jing·2025-11-21 04:58Core Insights - The article highlights a critical window for cross-border e-commerce companies to comply with tax regulations as the tax authority actively seeks to understand industry pain points and solutions [1][3]. Group 1: Revenue Recognition Issues - There is a discrepancy between the total sales reported by platforms and the actual income received by sellers, leading to confusion in revenue recognition [3][15]. - For example, a product sold for $100 may result in a net income of only $40 after deducting platform fees, while the platform reports the total sales of $100 [3][4]. - According to the 2025 No. 15 announcement, platforms report total sales, which does not reflect the actual income of cross-border sellers, causing potential tax inquiries due to significant income gaps [15][12]. Group 2: Taxpayer Identification Challenges - Many sellers operate multiple store fronts under different entities, complicating the identification of the actual taxpayer [12][16]. - The tax authority is unclear about the relationships between these entities and their actual operations, leading to compliance challenges [12][16]. - The article suggests that the tax authority should consider the operational realities of cross-border sellers and their compliance structures [28][30]. Group 3: Recommendations for Tax Authority - The industry suggests that the tax authority should clarify revenue recognition standards and allow for net income reporting [33][31]. - A transitional policy is recommended to help businesses adjust to historical data discrepancies [33]. - The article advocates for the tax authority to provide clear guidelines on tax treatment for cross-border e-commerce to avoid undue burdens on compliant businesses [30][34]. Group 4: Industry Response and Support - The article emphasizes the importance of industry participation in the tax authority's research process, encouraging businesses to engage actively [36][37]. - Companies are advised to prepare for the survey and present their operational realities and policy suggestions effectively [36][37]. - The article positions the consulting firm as a strategic partner for compliance transformation, offering tailored solutions for revenue recognition and taxpayer identification issues [36][37].