ECONOMY

Amazon, TikTok Sellers Face Fresh Tax Scrutiny in China

Published: Nov. 28, 2025 4:11 p.m. GMT+8

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China has tightened tax scrutiny of cross-border sellers on platforms such as Amazon and TikTok as authorities begin analyzing newly filed income data from more than 7,000 online platforms.

The platforms have started filing merchant and worker income data with Chinese tax authorities, complying with a new mandate that marks a significant tightening of oversight of the country’s digital economy.

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China now requires over 7,000 online platforms, including Amazon and TikTok, to file merchant and worker income data for tax scrutiny.
The new rules, in effect since June, target both domestic and foreign platforms, aiming to improve tax compliance for e-commerce and gig work.
Authorities have identified issues with unregistered sellers and discrepancies in VAT reporting, partly due to "bill-buying" customs declaration practices.

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Who’s Who

Amazon: Amazon is one of several online platforms, including TikTok, Shopee, AliExpress, and eBay, that are subject to China's tightened tax scrutiny. These platforms are now required to file merchant and worker income data with Chinese tax authorities. This has led to tax bureaus contacting online merchants about underreported value-added tax liabilities, using data from platforms like Amazon.

TikTok: TikTok is a platform facing increased tax scrutiny in China. Chinese authorities are analyzing income data from platforms like TikTok to ensure tax compliance from cross-border sellers. These platforms are now required to submit quarterly reports on the identity and income of businesses and gig workers providing services within mainland China.

Shopee: Shopee is an e-commerce platform facing increased tax scrutiny in China. Along with other platforms like Amazon and TikTok, it has begun submitting merchant and worker income data to Chinese tax authorities. This is part of China's move to tighten oversight on the digital economy, ensuring tax compliance for online operations.

AliExpress: AliExpress is mentioned as one of the e-commerce platforms whose sellers are facing increased tax scrutiny in China. Chinese tax authorities are analyzing newly filed income data from platforms like AliExpress, leading to notices regarding underreported VAT liabilities for some merchants. This aligns with China's broader effort to tighten tax oversight of its digital economy.

eBay: eBay (亿贝) is an e-commerce platform where cross-border sellers are facing increased tax scrutiny in China. Chinese tax authorities are analyzing newly filed income data from platforms like eBay, flagging inconsistencies between seller reports and revenue figures submitted by these platforms.

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What Happened When

June 2025：: China implemented regulations requiring platform enterprises to submit quarterly reports on the identity and income of business operators and gig workers.

July 2025 through September 2025：: Initial reporting window covered activity during this period.

By October 2025：: Regulatory deadline for first wave of filings from platforms, closing the initial reporting window.

November 28, 2025：: The State Taxation Administration (STA) announced it had received the first wave of income data filings from domestic and foreign platforms.

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