ECONOMY

China’s Online Exporters Face Tax Scrutiny as Platforms Share Data

Published: Nov. 24, 2025 5:47 p.m. GMT+8

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Chinese cross-border e-commerce sellers are receiving tax warnings after platforms like Amazon and TikTok began reporting their sales data directly to tax authorities, a move that exposes discrepancies with the sellers’ own declarations.

Over the past month, many online merchants have been contacted by tax bureaus about underreported value-added tax (VAT) liabilities, according to multiple sellers and tax consultants Caixin spoke with. The notices flagged inconsistencies between what the sellers reported and the revenue figures submitted by the e-commerce platforms they use, which also include Shopee, AliExpress and eBay.

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Chinese cross-border e-commerce sellers face tax warnings as Amazon, TikTok, and others now report sellers’ transaction data to authorities under June 2024 rules.
Discrepancies between platform data and sellers’ VAT filings, especially from “bill-buying” customs practices, put many at risk of higher domestic VAT rates and loss of tax rebates.
Challenges include unclear taxable revenue calculations, strict export rebate audits, and difficulty using compliant export channels for small sellers.

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Who’s Who

Amazon: Amazon, an e-commerce platform, began reporting sales data of Chinese cross-border sellers directly to tax authorities. In mid-October, Amazon notified its China-based sellers it would comply with new regulations requiring platforms to submit quarterly reports on seller identities, transaction volumes, and revenues. The first report, covering the third quarter, was due by the end of October. This move by Amazon and other platforms has exposed discrepancies in sellers' tax declarations.

TikTok: TikTok, along with other e-commerce platforms like Amazon, is now reporting sales data of Chinese cross-border sellers directly to tax authorities. This has led to tax warnings for many online merchants due to discrepancies between their self-declared VAT liabilities and the revenue figures submitted by TikTok and other platforms. The new regulations requiring this reporting took effect on June 20.

Shopee: Shopee is among the e-commerce platforms that have started reporting sales data of Chinese cross-border sellers to tax authorities. This action has led to tax warnings for many merchants due to discrepancies between their reported VAT liabilities and the revenue figures submitted by platforms like Shopee. The new regulations, effective June 20, require platforms to submit quarterly reports on seller identities, transaction volumes, and revenues.

AliExpress: AliExpress is an e-commerce platform that, along with others like Amazon and Shopee, is now reporting sales data of Chinese cross-border sellers directly to tax authorities. This has led to tax warnings for sellers due to discrepancies between their declared VAT liabilities and the revenue figures reported by AliExpress and other platforms.

eBay: eBay, along with other major e-commerce platforms like Amazon and TikTok, is now reporting its Chinese sellers' sales data directly to tax authorities. This has led to tax warnings for many online merchants due to discrepancies between their reported VAT liabilities and the revenue figures submitted by **eBay** and other platforms.

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What Happened When

June 20, 2025：: New rules on the reporting of tax-related information by internet platform companies took effect, requiring platforms to submit quarterly reports on sellers’ identities, transaction volumes, and revenues to tax authorities.

Mid-October 2025：: Amazon notified its China-based sellers that it would comply with the new regulations.

By the end of October 2025：: The first report by Amazon, covering the third quarter, was due to tax authorities.

October–November 2025：: Many online merchants were contacted by tax bureaus about underreported VAT liabilities following the platforms’ compliance with the new data reporting requirements.

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