China

What China Marketplace Reporting Rules Are

China has introduced a comprehensive tax-related information reporting regime for internet platform enterprises, aiming to enhance transparency and strengthen tax compliance across the digital economy. This regime requires digital platforms — including online marketplaces, e-commerce sites, and similar platforms (both domestic and foreign) with China-facing activity — to collect and submit structured tax data on merchants and individual service providers to China’s tax authorities on a regular quarterly basis.  The rules are set out in:

• State Council Order No. 810 — “Provisions on the Reporting of Tax-Related Information by Internet Platform Enterprises,” effective 20 June 2025; and
• State Taxation Administration (STA) Announcements clarifying implementation details and reporting procedures. 

The first mandatory reports are due shortly after the end of the first full quarter following implementation Q3 2025 reports by October 2025. 

Who must report in China

The following organisations are generally required to file tax-related information reports:

Online marketplace operators

Platforms that provide online business venues or facilitate commercial transactions (e-commerce marketplaces such as Taobao, Tmall, JD, Temu, SHEIN, Amazon China etc.).

Digital platforms with China-facing operations

This includes both domestic and offshore (foreign headquarters) platforms that:

• Operate in or target Chinese users; and
• Facilitate profit-making services such as transaction matching, business promotion, live-stream sales, freelancer services, etc.

Platforms with no local China entity

Even offshore platforms without a physical presence in China may need a domestic agent or designated reporting entity to submit required information.  We can register you. All required tax IDs and accounts - handled end to end. Start China Registration

What Information Must Be Reported

Platforms are required to report a set of tax-related data for each reporting period, primarily covering:

1. Platform Identity and Business Data

• Platform domain name
• Business type and activities
• Operating entity details and registration information
• Unified Social Credit Code or equivalent identifier 

2. Merchant & Seller Information

For businesses and individuals generating income on the platform:

• Identity information (business name, certificate numbers, contact info)
• Revenue and income from platform transactions
• Transaction details such as turnover amounts and net income 

3. Additional Data on Service Providers

In certain cases, the platform must also collect:

• Income data for individual workers (e.g., live-streamers, content creators)
• Identity details of service providers whose earnings come through platform activities 

Reporting Frequency and Deadlines

China’s reporting framework mandates quarterly reporting, which is generally more frequent than frameworks like the EU’s annual DAC7 regime. 

• Quarterly Reports – Platforms must file within one month after the end of each quarter. For example, Q4 2025 reports are due by January 31, 2026. 
• Initial Basic Information –platforms needed to register with the Chinese tax office within 30 days from launch. 

Also need DAC7 reporting? We map your data and submit on schedule. Request Reporting Assessment 

Exemptions & Practical Exclusions

Certain information is not required to be reported if:

• Already reported via other tax filing mechanisms Platforms don’t have to duplicate tax information already submitted through withholding declarations or accessible through government-to-government data sharing. 
• Public convenience services exemption Income from certain public convenience services (e.g., delivery, transport, domestic work) that is tax-exempt or not currently taxable may be excluded from reporting. 
• Historical data is exempt Platforms are not obligated to report tax-related data generated before the regulation’s effective date (June 2025). 

DAC7 registration of platform operators in China

There is no DAC7 or MRDP registration process in China. Platforms may instead need to complete:

• VAT registration or simplified VAT filings
• platform operator registration with local tax bureaus
• registration for withholding and reporting of seller income

China has issued official guidance strengthening digital platform reporting and data sharing, with phased implementation expected as MRDP-aligned rules are developed.

Types of activities that must be reported in China

Activity type	DAC7 / MRDP reporting	What applies in China
Sale of goods	No MRDP filing	VAT reporting and possible platform data disclosure
Rental of immovable property	No MRDP filing	VAT obligations if China-situs property
Personal services	No MRDP filing	Income tax and withholding obligations
Transport services	No MRDP filing	VAT and sector-specific reporting
Digital services	No MRDP filing	VAT on e-services and platform reporting

Even without DAC7 filings, platforms must ensure accurate transaction-level data is available for Chinese tax audits and reporting requests.

Excluded sellers in China

China does not apply DAC7-style seller classifications such as excluded sellers or high-volume thresholds. Instead:

• VAT thresholds apply to small-scale taxpayers
• exemptions may exist for certain low-value transactions
• income tax exemptions depend on seller status and activity type

Seller exclusions are assessed under VAT and income tax law, not under DAC7 logic.

List of partner jurisdictions

China does not currently participate in DAC7 or OECD MRDP automatic exchanges for digital platform reporting. For international cooperation, China relies on:

• CRS and AEOI frameworks for financial account information
• bilateral tax treaties and exchange of information on request

Future participation in MRDP-style exchanges has been discussed at OECD level, but no binding implementation dates have been officially announced

Verification & Platform Responsibilities

Platforms are responsible for verifying the accuracy, authenticity, and completeness of the data submitted. However:

• If a platform has exercised reasonable due diligence, it may not be held liable for inaccuracies that originate from sellers or service providers. 

Platforms must also maintain secure storage and standardised records to satisfy reporting and audit requests. 

Penalties for Non-Compliance

Failure to comply with reporting requirements can result in:

• Monetary fines ranging from approx. RMB 20,000 to RMB 500,000 depending on severity;
• In serious cases, business suspension or regulatory sanctions; and
• Enforcement actions if data is concealed or falsely reported. 

However, platforms demonstrating due diligence in data verification are less likely to be penalised for user errors. .