ECONOMY

China’s Data Dragnet Triggers Tax Jump for Online Merchants

Published: Dec. 9, 2025 4:05 p.m. GMT+8

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Lian Qifeng, an official at the State Taxation Administration (STA). Photo: STA

Tax payments by merchants on internet platforms rose 12.7% year-on-year in the third quarter, as platform operators began submitting vendor tax-related data to authorities for the first time in October, China’s State Taxation Administration (STA) said Monday.

Lian Qifeng, an STA official, told a press briefing that most merchants on platforms completed their filings for the quarter. Those whose self-declared income was significantly lower than the figures submitted by platforms were reminded by tax authorities, and the vast majority corrected their filings. He said tax compliance has improved markedly, and the tax burden gap between online and offline merchants has narrowed.

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Internet platform merchants' tax payments rose 12.7% year-on-year in Q3 after new data-reporting rules began in October, per China's State Taxation Administration.
Over 7,000 domestic and foreign platforms submitted merchant data, increasing compliance and narrowing the tax burden gap between online and offline merchants.
New measures improved tax awareness and invoice practices, curbed order inflation, and made it easier to detect tax evasion and registration issues.

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Who’s Who

Amazon: The article states that some sellers on Amazon, among other e-commerce platforms, received reminders from tax authorities due to discrepancies between their declared sales and the figures reported by the platform. This occurred after new rules mandated internet platforms to share merchants' quarterly income and identity information with tax authorities, a requirement that over 7,000 domestic and foreign platforms, including Amazon, have fulfilled.

TikTok: TikTok is one of the platforms mentioned whose sellers received reminders from tax authorities due to discrepancies between their self-declared sales and the figures reported by the platform. This occurred since November, following a new mandate requiring internet platforms to share merchant tax-related data with authorities.

AI generated, for reference only