ST. PETERSBURG, June 4. /TASS/. Expanding Russian exports to China is only possible in a B2B format, President of the Association of Internet Trade Companies Artem Sokolov told TASS on the sidelines of the St. Petersburg International Economic Forum (SPIEF).
"Russia currently has significant potential in international e-commerce. However, to quickly enter foreign markets, B2C cross-border trade is typically used, which means sending goods directly to the buyer via parcel or express freight. This approach won’t work with China. <…> Developing exports to China is only possible through B2B channels," he said.
According to current Chinese legislation, all incoming goods since 2017 have been subject to a value-added tax (VAT) of 13%, as well as a consumption tax, the rate of which varies from 13% to 50% depending on the category of goods. For example, the consumption tax rate for household goods and furniture ranges from 13% to 20%; for clothing, footwear, sporting goods, and bedding it’s 20%; and for jewelry, cosmetics, and alcohol it’s 50%. All these product categories are produced in Russia.
There is a benefit for Chinese citizens that allows them to pay 70% of the amount of taxes due (VAT + consumption tax) if the purchase amount does not exceed 5,000 yuan and goods worth no more than 26,000 yuan were purchased during the year.
