Central Bank Digital Currency (cbdc) adoption continues to accelerate China – Where digital yuan Is breaking new ground in the world of import taxation and cross border commerce.
Securities Times Reported that Guangdong, China has started issuing refunds after importing digital yuan.
The media outlet reported that the local tax body miscalculated an import tax bill for “miscalculating” a transaction made by an electrical and electrical parts supplier named Huizhou Tianbao Chuangneng Technology.
As such, the firm was owed a refund of $1,035. It received it as a digital yuan payment to its corporate wallet.
The media outlet reported that Guangzhou, Zhaoqing and “other” parts of the digital CNY pilot zone have now launched “digital yuan payment and tax refund services for domestic value-added tax, corporate income tax and other taxes.”
It added that the development allows local treasury departments to “receive and handle” digital yuan tax refunds in a faster and more efficient manner.
China’s “cross-border commerce tax” success
Meanwhile, in Zhuhai, a man surnamed Guan this week became the first Chinese national to pay parcel tax on merchandise imports from Macau. In China, the parcel tax is a composite levy on imports – customs duty, import VAT and consumption taxation.
The man was shopping while on holiday in Macau, which is officially Chinese but has its own legal administration and economy like Hong Kong.
Guan was charged around $52 for her purchase, CCTV reported (via SouthCN.com, But he chose to do so using the digital yuan – thus becoming the first person in the country to do so.
Guan told the media outlet that making the payment was “convenient” — and that it had eliminated the time she would otherwise have had to wait in line to pay the tax. He claimed that he “just had to scan a QR code” using the People’s Bank of China’s digital yuan app.
Officials said that the CBDC payment system “improves the speed of transactions and eliminates the passenger customs clearance process.”
“Exotic” Digital Yuan Use Cases Are Growing – and are now being piloted in extensive trials in Macau and Hong Kong,