Seeking Alpha

Report: China planning online sales tax

  • China's Want Daily reports the government's State Administration of Taxation is studying an online sales tax and plans to impose one before 2015. Alibaba's (Pending:BABA) Tmall site (focused on sales from larger businesses) and JD.com (NASDAQ:JD) would reportedly be among the first sites affected.
  • A JD.com exec says e-commerce companies are expecting a sales tax to be implemented on a large scale. A seller on Alibaba's Taobao site notes many smaller merchants (Taobao's specialty) haven't registered their businesses, something that could make tax collection difficult.
  • With Chinese online retail sales having totaled an estimated $305.8B in 2013 (per iResearch), e-commerce has grown to account for a sizable chunk of China's economy. Dangdang (NYSE:DANG) and Vipshop (NYSE:VIPS) are two other names that stand to be affected by an online sales tax.
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Comments (15)
  • dgavrile
    , contributor
    Comments (2) | Send Message
     
    How will this impact the IPO ?
    8 Aug 2014, 05:34 PM Reply Like
  • Guy in Ithaca
    , contributor
    Comments (427) | Send Message
     
    Nothing new here (sales tax). This was really probably inevitable.
    8 Aug 2014, 05:39 PM Reply Like
  • maxbelski
    , contributor
    Comments (55) | Send Message
     
    I agree, no big deal here. I have been to China many times and will tell you that Chinese are very calculating people. I would not worry about BABA. Think long term and what this company can achieve. Most people think short term, typical american way, get rich in a day.
    Have a nice weekend.
    8 Aug 2014, 06:56 PM Reply Like
  • Scooter-Pop
    , contributor
    Comments (2717) | Send Message
     
    Smartest Nation on earth, taxing the World now. Brilliant, Brilliant!

     

    Amazon and EBay share price should jump on this news as long as Barack refrains from following the Chinese.

     

    Watch out Uber and Lyft, y'all may be the next TAX opportunity?
    8 Aug 2014, 05:40 PM Reply Like
  • eager1
    , contributor
    Comments (127) | Send Message
     
    The problem with any China trade is that you never know what will happen - the communist party can deliver a horrible blow to businesses on any day at any time whenever they feel like it. They probably mean well but you never know.

     

    Example: One day years ago the communist party froze the price of gas at the pump to help the people even though the price of oil was shooting up. So the oil companies were forced to buy oil at a high price and sell oil products at a lower price. A big loss to the company. The oil companies lost a zillion dollars and tanked. It is stuff like that. The government says they are learning and want market forces to rule but it is a long learning curve and lots and lots of politics involved...

     

    On the other hand they have over a billion people and the more they embrace the free market system the better it will be for the people and the shareholders. The free market system, as they are learning every day, works real well.
    8 Aug 2014, 05:49 PM Reply Like
  • Shaduc
    , contributor
    Comments (1850) | Send Message
     
    " The free market system, as they are learning every day, works real well."

     

    How well does it work in the USA?
    8 Aug 2014, 07:32 PM Reply Like
  • Pete P.
    , contributor
    Comments (800) | Send Message
     
    They could start at a small tax off 1% and see how it goes, so as not too disturb things too much.
    8 Aug 2014, 06:11 PM Reply Like
  • Scooter-Pop
    , contributor
    Comments (2717) | Send Message
     
    Obama Care stated out small. Now those paying as little as $18 for coverage want it free. Wait, they want you to pay for their insurance now. Isn't that Medicaid, the great Unfunded mandate?

     

    The "Breaking News" item exposes a concept seeking the next great platform from which to generate more Tax Revenue. BaBa may be that platform? All the while failing to fund those substantially underfunded mandates is the practice here in the States.
    8 Aug 2014, 09:53 PM Reply Like
  • dgavrile
    , contributor
    Comments (2) | Send Message
     
    So, to conclude I understand it won't be any major foreseen impact in taxation on short and medium term, thus the IPO should be a success.
    10 Aug 2014, 09:12 AM Reply Like
  • danielita
    , contributor
    Comments (72) | Send Message
     
    I am a little concerned. I've shopped there. Dealing with Alibaba retailers is already cumbersome. Bad Enlish, slow shipping which is due to government's actions for sure and other issues. The ONLY reason to shop at Alibaba is price. If price is raised, Alibaba can be affected.
    10 Aug 2014, 06:45 PM Reply Like
  • Shaduc
    , contributor
    Comments (1850) | Send Message
     
    " Bad Enlish, slow shipping which is due to government's actions for sure and other issues. "

     

    Time to learn or hire someone who speaks Mandarin.
    10 Aug 2014, 07:53 PM Reply Like
  • Guy in Ithaca
    , contributor
    Comments (427) | Send Message
     
    Shaduc-

     

    为什么不拿到itranslate应用程序吗?...
    12 Aug 2014, 08:52 PM Reply Like
  • Shaduc
    , contributor
    Comments (1850) | Send Message
     
    "Why not get itranslate application? ..."

     

    I guess I'm lazy. So I use ugh ... Bing translate!!

     

    What apps are there for accurate translations?
    13 Aug 2014, 06:52 AM Reply Like
  • Shaduc
    , contributor
    Comments (1850) | Send Message
     
    For apps K-T dictionary is great, it translate from English, pinyin, written Chinese characters.
    13 Aug 2014, 09:02 AM Reply Like
  • Guy in Ithaca
    , contributor
    Comments (427) | Send Message
     
    Shaduc- I've used iTranslate in business with people who only speak Mandarin and it works fine as far as I can tell. These people keep telling me that the words are correct. The app has upgraded itself a couple of times so maybe it's improving? Never used Bing and I'm reluctant to mess with anything that works.

     

    A small, flawless wristwatch translator would be useful. Which app is best? I have no idea but this kind if thing can only become more important...

     

    At least until we all speak the same hybrid language.
    13 Aug 2014, 07:57 AM Reply Like
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