China Eases Crossborder Ecommerce Tax Rules in Shenzhen

Shenzhen Municipal Commerce Bureau has optimized and upgraded the registration module for cross-border e-commerce's "tax exemption without invoices" policy, officially launched on February 1st. The new module realizes a fully electronic process, simplifies operations, and clarifies timelines. Companies need to apply through the official platform. The policy applies to the 9610 export model, and detailed application procedures have been published. This move aims to standardize industry development and reduce compliance costs for enterprises. However, the issue of corporate income tax cost confirmation and deduction needs further optimization.

Shenzhen, February 2, 2024 — Cross-border e-commerce enterprises facing long-standing challenges with export tax rebates due to invoice-related issues may finally see relief. The Shenzhen Commerce Bureau announced a comprehensive upgrade to the "no-invoice tax exemption" registration module on its cross-border e-commerce online service platform, which became operational on February 1.

Full Digitalization Enhances Convenience

The upgraded system introduces complete digitalization of the tax exemption registration process. Companies can now access all functionalities through Shenzhen's official cross-border e-commerce service platform, eliminating paperwork and streamlining operations.

Clear Timelines Ensure Smooth Processing

To maintain system stability and data accuracy, the Bureau established specific timelines. Enterprises must schedule registrations at least two natural days before customs clearance of exported goods. Data confirmation becomes available on the third day (T+2) after scheduling. Businesses are advised to plan accordingly and avoid peak periods.

Official Channels Only

The Bureau emphasized that no third-party agencies are authorized to handle registrations. Companies must use official platforms directly to prevent misinformation and potential losses from unofficial channels.

Policy Scope and Eligibility

The tax exemption currently applies exclusively to the 9610 export model for:

Domestic shippers and production/sales units listed on 9610 export declarations
Actual sellers noted in customs declaration remarks (with unified social credit codes)

Additional requirements include:

Only declarations processed through Shenzhen's official platforms by locally registered companies qualify
For agency exports, the customs declaration agent must also be Shenzhen-based

Simplified Application Process

The Bureau provided detailed guidelines:

Prerequisites

Companies must be Shenzhen-registered and complete declarations through designated platforms. Documentation must properly note seller information when using agency arrangements.

Platform Registration

Initial registration on the service platform is required before accessing tax exemption features.

Registration Steps

Submit tax exemption registration requests via the dedicated module
Process declarations 1-2 days after scheduling
Track registration status through the platform

Operational Guidance

The Bureau differentiated procedures for consolidated and individual declarations:

Consolidated Declarations

When multiple sellers combine declarations, complete 18-digit unified social credit codes must appear in designated remark fields. Non-compliant entries will be rejected.

Individual Declarations

Sellers exporting under their own names or properly documented agency arrangements can process registrations normally.

Industry Impact

As China's leading cross-border e-commerce hub, Shenzhen's policy innovation represents both technical advancement and regulatory adaptation to real business needs. The system provides clear compliance pathways, potentially reducing operational uncertainties and allowing companies to focus on core business activities.

Future Considerations

While marking significant progress, the policy still faces challenges regarding income tax calculations without purchase invoices. Further refinements may be needed to address complex tax scenarios and support sustainable industry growth.