A common issue: goods purchased at a market or from a small supplier without a fapiao, even though procurement is the primary expense that reduces tax. The good news: for small businesses under the import regime, proof of origin is not required — this is a direct provision of the PRC tax code, not a loophole.
Why this is legal
The sales model works as follows: your company signs a contract with the Chinese branch of Wildberries and sells goods to them — the transaction takes place within China. The contract with Wildberries China is sufficient grounds to record revenue, and your status as a small business under the import regime exempts you from providing proof of origin.
However, a fapiao is still more profitable
Without a fapiao, procurement costs cannot be deducted from the tax base. Here is the numerical difference based on a turnover of 100,000 ¥, a WB commission of 12%, and logistics costs of 7,000 ¥:
| Option | Tax base for 5% | Income tax |
|---|---|---|
| Procurement of 50,000 ¥ with fapiao | turnover − procurement − logistics − commission = 31,000 ¥ | 1,550 ¥ |
| Same procurement without fapiao | turnover − logistics − commission = 81,000 ¥ | 4,050 ¥ |
The difference is 2,500 ¥ in tax for every 100,000 ¥ of turnover. All else being equal, a supplier with a fapiao is more economically advantageous than a market vendor without documents, even if their price is a few percent higher.
Practical conclusions
- always ask suppliers for a fapiao; large 1688 suppliers provide them without issues
- procurement without a fapiao is legal but results in higher taxes — factor this into your product pricing
- other expenses (rent, accountant, logistics) must be documented — full list
- cargo shipping cannot be reflected in accounting — for a white scheme, use platform logistics or official export
Frequently asked questions
Should I ask for a fapiao retroactively?
Large suppliers will issue a fapiao for past transactions within a reasonable timeframe — it is always worth asking. Small market sellers usually will not; in that case, the expense simply cannot be deducted.
Is there a risk in purchasing without documents?
For small businesses under the import regime — no: proof of origin is not required by the code. The risk is purely economic — overpaying income tax.
How to manage accounting for mixed procurement?
Separately: batches with a fapiao are deducted, those without are not. The accountant records them based on the documents automatically; the seller only needs to ensure they do not lose the fapiao themselves.
Do I need proof of origin for goods sold on Wildberries China?
No, for small businesses under the import regime, proof of origin is not required by the PRC tax code. This is a legal provision rather than a loophole, and tax authorities do not request these documents from companies in this category.
Is it legal to sell goods on Wildberries without a fapiao?
Yes, it is legal to sell goods without a fapiao, but you will not be able to deduct procurement costs from your tax base. This results in higher taxes, so you should factor this additional cost into your product pricing.
How does the lack of a fapiao affect my tax payments?
Without a fapiao, you cannot deduct procurement costs, which increases your taxable income. For example, on a turnover of 100,000 ¥, you would pay 2,500 ¥ more in tax compared to a scenario where you have a fapiao for your procurement.
Can I mix goods with and without a fapiao in my accounting?
Yes, you can manage mixed procurement by separating the batches. Batches with a fapiao are deducted from the tax base, while those without are not, and your accountant will record them based on the provided documentation.