Amazon Begins Quarterly Tax Reporting to China: A New Era of Cross-Border Transparency
In a landmark regulatory move, Amazon has begun quarterly tax reporting to Chinese authorities for cross-border sellers starting October 31, 2025. The eCommerce giant will now share detailed transaction and revenue data with China’s State Taxation Administration (STA), marking the end of the long-standing “tax gray zone” that many exporters operated within.
Why This Matters
For years, Chinese sellers on Amazon have enjoyed relaxed reporting conditions, often leveraging offshore accounts or incomplete declarations to optimize profits. This new compliance framework gives tax authorities direct access to verified sales data — ensuring that value-added tax (VAT) and income tax obligations are properly enforced.
This step is part of China’s broader effort to formalize cross-border trade and align its eCommerce ecosystem with global transparency standards, following similar marketplace tax mandates in the European Union, Australia, and Canada.
Impact on Chinese Sellers
For the millions of Chinese merchants exporting via Amazon, the implications are immediate and far-reaching:
- Increased compliance costs: Sellers will need professional tax assistance, robust accounting systems, and better financial documentation.
- Reduced tax avoidance: Underreporting will become risky, as Amazon’s data-sharing leaves little room for opacity.
- Market restructuring: Expect smaller or non-compliant sellers to exit, while well-established exporters gain trust and long-term viability.
In the long run, this could enhance China’s credibility as a regulated and reliable global eCommerce hub, potentially attracting new trade agreements and marketplace partnerships.
How U.S. Sellers Are Affected
For U.S.-based Amazon sellers, this shift levels the competitive playing field. With Chinese sellers’ operational costs rising under tighter oversight, American merchants could see improved pricing parity and better visibility in Amazon’s marketplace rankings.
However, sellers should also anticipate short-term supply fluctuations as Chinese exporters adapt to the new reporting framework.
The De Minimis Context
This policy arrives amid growing scrutiny over the U.S. “de minimis” rule, which allows duty-free imports under $800. With the U.S. revisiting that threshold and China enforcing stricter tax transparency, cross-border eCommerce is entering a new phase — defined by regulation, accountability, and fairer global competition.
Next Steps for Sellers
To stay compliant and competitive, you should:
- Review tax structures and ensure all earnings are accurately reported in both home and foreign markets.
- Adopt digital accounting and invoicing tools to streamline VAT and income tax filing.
- Consult certified tax professionals familiar with cross-border eCommerce regulations in China and the U.S.
- Monitor policy updates on de minimis thresholds and Amazon’s tax reporting practices.
- Focus on operational efficiency and brand credibility, as transparency and compliance increasingly influence marketplace visibility and buyer trust.
Bottom Line
Amazon’s quarterly tax reporting to Chinese authorities is more than a compliance update. It’s a milestone in global eCommerce governance. For sellers worldwide, the message is clear: transparency and tax compliance are now central to sustaining growth in the international marketplace.
Related News:
De Minimis Rule Ends: What Sellers Must Know and Do Before August 29
Source: PPC Land