News and Information

Effective January 1, 2026, the tax treatment rules for cross-border e-commerce will undergo fundamental changes. After the new regulations take effect,If a company is investigated for tax evasion due to hidden income, the value-added tax rate for supplementary tax payments will increase significantly from the previous 1%-3% to 13%, marking the official end of the era of 'low-cost violations' in the industry.

Key Changes and Impacts

• The tax rate for tax supplements has soared: In the past, hidden income that was discovered could be supplemented at a preferential tax rate of 1%-3% for small-scale taxpayers. The new regulations require that the sales volume adjusted by the audit will be traced back to the period when the business occurred and re-determined. If this results in an annual sales volume exceeding the standard of 5 million yuan, it must be supplemented by registering as a general taxpayer and paying value-added tax and late fees at a rate of 13% or higher.

• Tightening of approved tax assessment: the rules governing approved assessment for enterprise income tax have likewise been tightened, substantially narrowing the scope for using grounds such as “missing input invoices” to reduce tax liabilities through approved assessment.

Urgent advice for sellers

• Comprehensive revenue self-audit: Immediately reconcile historical accounting records and filing data to ensure that all sales revenue (including payments collected through e-commerce platforms) has been reported in full and in accordance with applicable law.

• Enhance financial and tax management: Establish and improve sound accounting records, obtain compliant input invoices, and prepare for standardized accounting.

• Evaluate taxpayer identity: Pay close attention to your own sales volume. If it approaches the 5 million yuan threshold, plan ahead and proactively register as a general taxpayer to avoid passive penalties.

• Seek professional support: tax compliance is becoming increasingly complex. It is recommended to consult professional tax advisors promptly to ensure a smooth transition.

Source: State Taxation Administration

Under the rules governing trademark registration, the trademark was first registered and then used to report the seller for infringement, causing the seller’s ASIN to be automatically delisted by the platform. The trademark owner then extorted a high “unlisting fee” from the seller, demanding USD 20,000. Cases like thisIt happens every day: a large number of sellers have their trademarks squatted, their links taken down, and are extorted for fees.

How it works

• Registration rules: Squatters take advantage of the rules of the EU (EUIPO) and German (DPMA) trademark offices, which do not substantively examine prior rights when registering, to quickly squat on trademarks.

• Platform Complaint: The seller’s infringement is subsequently reported to Amazon. As the platform handles complaints through an automated process, the relevant ASINs are typically automatically delisted or suspended.

• Extortion: After the seller's sales were affected, the cybersquatter contacted the seller and demanded a substantial payment to withdraw the complaint.

GiveKey Advice for Sellers

• Active defense: register your own trademark in key sales markets, especially the EU, as early as possible. This is the most fundamental safeguard.

• Stay calm in the face of adversity: If you encounter such extortion, do not pay directly. First, collect evidence and consider filing an opposition or invalidation procedure with the trademark office (although this process takes longer).

Source:Going Global Network

To alleviate the pressure caused by Amazon Italy’s EUR 50,000 VAT deposit policy, Amazon recently launched a subsidy program for sellers on selected European marketplaces. Eligible sellers who apply before the deadline may receive a subsidy of up to EUR 2,350.

Policy core

Subsidy amount: up to 2,350 euros.

Zhihu

Policy objective: To reduce the financial burden on sellers arising from compliance with Italian VAT requirements, including a EUR 50,000 security deposit.

Key Application Threshold

To receive a subsidy, sellers must provide a core document: an insurance or bank guarantee certificate issued by an Italian authorized agency, valid for up to 36 months, with a guarantee amount of no less than 50,000 euros.

Trends and reminders

Tax compliance thresholds in European countries are continuing to rise. For Chinese sellers, in the long run, directly registering and operating a European local company account may be a more thorough and robust response strategy, helping to fundamentally avoid such complex cross-border tax guarantee issues.

Source:Amazon

Cross-border e-commerce platform Shein recently confirmed that its French site has reopened for third-party seller product sales. Previously, the Paris Court of Justice rejected the French government's request to ban its website, paving the way for this restoration.

Core Information

Recovery status: The SHEIN France platform has resumed sales by third-party sellers and a range of self-operated products (such as jewelry and home goods), but is proceeding gradually and cautiously.

Major limitations

Seller eligibility requirements: Currently, only experienced third-party sellers may join.

Category restrictions: Certain adult products may not be sold until the platform has implemented an effective age-filtering mechanism; the Toys category is limited to well-known brands..

Trends and insights

This incident highlights the pressure faced by cross-border e-commerce platforms in terms of local compliance and consumer rights protection when operating in key markets such as the EU. Platforms are responding by setting stricter seller and product review thresholds, which means that third-party sellers may need to meet higher qualification and compliance requirements to enter similar markets in the future.

Source:Yien Network

Recently, many Amazon sellers have had their brand registrations revoked by the platform and lost related functions because they failed to complete the 'Declaration of Use' required in the 5th and 6th years after registering a US trademark on time.This regulation is a mandatory legal procedure for maintaining the validity of US trademarks, and sellers must pay close attention to it.

What is the “mid-term oath”?

Under US trademark law, registering a trademark is not a one-time task. A declaration of use and evidence must be submitted between the 5th and 6th years, between the 9th and 10th years, and every 10 years thereafter upon renewal to prove that the trademark is still being genuinely used in commerce.

Current high-risk group: sellers who registered U.S. trademarks in 2020–2021 are now approaching their first Section 8 declaration deadline, at five to six years, and are most likely to overlook it.

Action advice for sellers

Self-check immediately: Verify the registration dates of all US trademarks under your name to confirm whether they have entered the declaration period.

Prepare compliance evidence: organize evidence of trademark use in the U.S. market in advance (e.g., photos of products bearing the logo, sales links, etc.). The materials must be in English and genuine and valid.

Timely Submission: Submit a Declaration of Use through an attorney or directly on the USPTO website to ensure procedural compliance.

The global trademark portfolio should be reviewed in parallel: in addition to the United States, trademarks in countries such as Mexico and the Philippines are subject to similar maintenance procedures. Deadlines in each jurisdiction should also be monitored to prevent brand rights from lapsing unexpectedly.

Source: ChuHai.com

And sellers who have already paid a deposit will also receive a refund in March.If the ruling finds the action illegal, it could not only trigger a large-scale refund of the approximately $133 billion in tariffs already collected, but the current tariff rate could also be reduced by as much as 20%.The outcome of this case will directly reshape the cost of Sino-US trade and has drawn high attention from the cross-border industry.

Core of the ruling and potential impact

Key issue: The core of the ruling is determining whether the procedures for imposing the additional tariffs that year were lawful.

Direct impact: If found to be illegal, already paid customs duties may be refunded, and future tax rates could be directly reduced by up to 20%.

Litigants and market expectations

More than 1,000 plaintiffs: The lawsuit was initiated by more than 1,000 American companies, covering multiple industries including retail, automotive, and manufacturing, including well-known companies such as Costco and Revlon. About a quarter of them are American subsidiaries of multinational companies.

High probability of overturning: According to Polymarket's market prediction data, the probability of tariffs being overturned has reached 70%-78%.

Advice for relevant companies

Monitor the outcome closely: promptly obtain official information as soon as the ruling is published and assess its specific impact on your own products.

Pre-case cost adjustment: It is possible to calculate in advance the impact of a 5%-20% decrease in tariffs on product costs and pricing strategies, and be prepared.

Understand the refund process: If the decision supports a refund, promptly contact legal counsel or an agent to confirm the eligibility requirements and application procedure.

Source:NetEase News