Are Your Sales Data Being Reported to the Tax Authority? What E-commerce, Live Streaming, and Cross-border Sellers Need to Know

Whether you rent a stall at the Yiwu International Trade City, set up a live streaming room in Beixiazhu Village, or list your products on Taobao and Pinduoduo—these are almost standard practices for business owners in Yiwu. However, many people are still unaware that: starting from October 2025, the e-commerce platforms and live streaming platforms you use have been reporting your identity information and income data to the tax authorities on a quarterly basis.

This is not just a rumor; it's a concrete institutional arrangement under State Council Order No. 810. Today, Jinfan Tax & Finance will explain this rule in detail and help you calculate: with the data already reported, is your tax compliance keeping up?

I. First, let's clarify: who set this 'reporting list' and what does it include?

1. Policy Basis

On June 20, 2025, the Provisions on the Reporting of Tax-Related Information by Internet Platform Enterprises (State Council Order No. 810) was promulgated and came into effect on the date of its issuance. Subsequently, Announcement No. 15 of 2025 by the State Administration of Taxation further clarified the scope of reporting, the content, and specific forms. On September 25, 2025, the State Administration of Taxation also issued the Frequently Asked Questions on the Reporting of Tax-Related Information by Internet Platform Enterprises, providing additional details on practical implementation.

2. What exactly do the platforms need to report

Reporting Content	Specific Items	Reporting Time
Platform Basic Information	Platform domain name, type of business, unified social credit code and name of the operating entity	Within 30 days from the effective date or within 30 days from the start of business operations
Identity Information of Operators and Employees	Name/Full Name, Unified Social Credit Code (or ID type and number), address, store name, unique store identification code, contact information, etc.	Update when information changes after the initial report; no need to re-report if there are no changes
Income Information	Total income, refund amount, net income, number of transactions (orders)	Report the previous quarter's income information within the following month after the end of each quarter

3. Which platforms are included in the reporting scope

Online commodity sales platforms (Taobao, Pinduoduo, JD, etc.)
Online live streaming platforms (Douyin, Kuaishou, etc.)
Online freight platforms, flexible employment platforms
Platforms providing education, medical, travel, consulting, training, brokerage, design, agency, technical services, etc.
Platforms providing aggregation services, as well as platforms providing infrastructure services for mini-programs and quick applications
For overseas platforms with operational entities in China, the domestic entity is responsible for reporting; if there is no domestic operational entity, the overseas platform must designate a domestic agent to report

In other words: if your business is conducted through a platform, most Yiwu e-commerce, live streaming, and cross-border sellers are within the reporting scope.

II. Four Common Misconceptions Among Yiwu Business Owners

Misconception 1: Income is reported based on the 'net amount received'?

No. According to the regulations, total income refers to the sum of the total price and VAT, without deducting commissions, service fees paid to the platform, or subsidies provided by government agencies or payment institutions. If you sell 1.03 million CNY (including tax) on a platform, even if the commission and activity fees reduce your net amount to 0.95 million CNY, the reported income to the tax authority is still 1.03 million CNY. The 'net income' = total income - refund amount, which is different from the 'actual amount received.'

Misconception 2: Can the '水分' from '刷单' be excluded first?

The official Q&A is very clear: Platform enterprises should report the income information of operators on the platform as required and must not arbitrarily exclude so-called 'brushing' income. The orders generated to boost sales and positive reviews are visible at the tax authority. This is a real reminder for those shops in Yiwu that rely on brushing to increase their volume.

[h3]Misconception 3: No need to report after the store is closed?[/h3][p]No. If a store is closed after the implementation of the regulation (third quarter of 2025), the platform still needs to report the identity information of the store operator and the income information for the third quarter of 2025; if it is closed between June 20, 2025, and June 30, 2025, the identity information also needs to be reported.[/p][h3]Misconception 4: Overseas platforms and cross-border businesses are out of reach?[/h3][p]On the contrary. Foreign operators on domestic platforms need to report; for overseas platforms with operational entities in China, the domestic entity reports, and if there is no domestic operational entity, a designated domestic agent must report. Yiwu sellers operating on Amazon, TikTok Shop, or independent sites should not think they can avoid scrutiny just because they are separated by an internet connection.[/p]

III. Crunching the Numbers: Can 'Zero Filing' Hold Up After Data Reporting?

[p]Here are two common scenarios in Yiwu (the figures are examples for illustration):[/p][table][tr][th]Scenario[/th][th]Quarterly Net Income Reported by Platform[/th][th]Original Filing Method[/th][th]Where the Problem Lies[/th][/tr][tr][td]A: International Trade City Merchant Also Running a Small Taobao Store[/td][td]Approximately CNY 260,000[/td][td]'Zero Filing' for a long time[/td][td]Within a quarterly threshold of CNY 300,000, VAT could be exempted by law. 'Zero Filing' instead exposes the issue of 'having income but not declaring it.'[/td][/tr][tr][td]B: Beixiazhu Live Streaming Team[/td][td]Approximately CNY 3.8 million[/td][td>Individual business subject to assessed collection, declared at around 1%[/td][td>The difference between the reported amount and the actual amount is too large, making it easy to trigger a risk alert.[/td][/tr][/table][p]Let's do a more straightforward calculation: currently, small-scale taxpayers are exempt from VAT on monthly sales below CNY 100,000 (quarterly below CNY 300,000) until December 31, 2027. For taxable sales income subject to a 3% levy rate, the rate is reduced to 1%. For small and micro-profit enterprises, the actual tax burden is about 5% on annual taxable income up to CNY 3 million.[/p][p>In other words, compliance in filing does not necessarily mean paying a lot more in taxes. What is truly costly is the back taxes, late fees, and fines after being caught underreporting. With the same level of income, compliant filing might result in zero VAT; hiding the income and getting caught will lead to back taxes, daily late fees, and potentially fines for serious cases.[/p]

IV. If These Three Signals Appear, Your Data Has Likely Been Matched

[ol][li]Receiving a risk alert, SMS, or call from the tax department, indicating a discrepancy between platform income and declared income[/li][li>A significant mismatch between invoiced amounts and platform income (e.g., CNY 3 million in platform transactions but only CNY 200,000 in invoices for the year)[/li][li>Long-term 'zero filing,' or a significant mismatch between the number of people declared for social security and individual income tax and the scale of the business[/li][/ol][p>The appearance of any one of these signals suggests that you should conduct a self-inspection as soon as possible, rather than waiting for the tax authorities to come knocking.[/p]

V. Four Steps for Self-Inspection That Yiwu Business Owners Can Take Now

Reconcile Accounts: Export the "net income and number of orders" from the backends of each platform, and reconcile them with your quarterly tax returns on a quarter-by-quarter basis.
Check the Entity Type: Is the store opened with an individual ID, or as an individual business, or a company? The tax burden and available benefits vary significantly depending on the type of entity.
File Supplementary Returns: If underreporting is discovered, correct it as soon as possible through amended filings. The cost of voluntarily correcting is much lower than being caught in an audit.
Keep Evidence: Retain records of refunds, commission and service fee vouchers, cost and expense receipts, and related records of fake transactions. Don't wait until the tax authorities ask for them.

VI. Frequently Asked Questions (Q&A)

Q1: I only have a few ten thousand CNY in monthly turnover. Will the platform still report this?

A: Yes. There is no threshold amount for reporting. Platforms report identity and income information on a quarterly basis. However, if the income falls within the tax-exempt limit, you do not need to pay value-added tax after compliant filing, so there's no need to be overly concerned.

Q2: Once the platform reports the data, does that mean I will definitely have to pay more taxes?

A: Not necessarily. What the platform reports is "data," not a "tax bill." Whether you can enjoy tax exemptions and at what rate you should pay depends on the actual preferential policies applicable to you and your filing situation.

Q3: I am in the export business. Will the platform data lead to double taxation?

A: Export businesses are subject to tax exemption or refund policies according to regulations. The key is to ensure that customs declarations, foreign exchange receipts, and input invoices are complete, so that the export declaration matches the platform data, avoiding misjudgment.

Q4: Are the hosts and part-time packers I hire considered "employees"?

A: Natural persons who provide profit-making services in their personal capacity through internet platforms are considered "employees," and the platform needs to report their income information. However, for those engaged in delivery, transportation, housekeeping, and other convenience services within the platform, who legally enjoy tax preferences or do not need to pay taxes, the platform does not report their income information.

Q5: Is it too late to make corrections now?

A: It's not too late, and the sooner the better. Voluntarily correcting filings and paying back taxes usually avoids the severe penalties associated with tax evasion.

Sources and References

Provisions on the Reporting of Tax-Related Information by Internet Platform Enterprises (Order No. 810 of the State Council of the People's Republic of China, promulgated and implemented on June 20, 2025) ——Original text in the Policy and Regulations Database of the State Administration of Taxation
Announcement of the State Administration of Taxation on Matters Concerning the Reporting of Tax-Related Information by Internet Platform Enterprises (Announcement No. 15 of 2025 of the State Administration of Taxation, June 26, 2025) ——Original text in the Policy and Regulations Database of the State Administration of Taxation
State Administration of Taxation, Commonly Asked Questions on the Reporting of Tax-Related Information by Internet Platform Enterprises (September 25, 2025, Department of Tax Collection and Technology Development) ——View Original Text

Final Words

"),