Newegg Reports China Sellers' Income to Chinese Tax Authorities and Issues No U.S. 1099: How to Handle Both Sides
Under State Council Decree No. 810, Newegg reports mainland China sellers' identity and income to Chinese tax authorities each quarter, even for U.S.-only sellers, while its seller FAQ says it issues no 1099. No U.S. 1099 doesn't mean no U.S. return; that depends on how you operate in the U.S., and both sides' numbers should come from one set of books.
Newegg now reports mainland China sellers' identity and income to Chinese tax authorities every quarter under China's State Council Decree No. 810 on tax information reporting by internet platforms, including sellers who sell only on the U.S. site. On the U.S. side, Newegg's seller FAQ says it is the merchant of record and issues sellers no 1099, and sellers on a W-8BEN-E are generally outside Form 1099-K anyway. But no U.S. 1099 doesn't mean no U.S. return, and the numbers both countries see should come from one set of books.
What Newegg reports in China, and when
Newegg Seller Academy's notice on the PRC platform tax information reporting requirements (updated October 21, 2026) says that under State Council Decree No. 810 and State Taxation Administration Announcement No. 15 of 2025, Newegg reports information on Chinese sellers to Chinese tax authorities every quarter. The first report, covering July to September 2025, was due by October 31, 2025.
What is reported: identity information, including the company name, unified social credit code, store identifier and URL, settlement account, contact person and phone, and the date the store started trading; and income information for the prior quarter, including total sales, refunds, total commissions and service fees paid to the platform, and the number of transactions. A seller with several stores is reported store by store.
Who is covered: sellers whose operating entity is in mainland China (a company registered there, or an individual with a mainland ID), whichever site they sell on. Selling only on the U.S. site, with no sales in China, doesn't take you out of scope.
What sellers do: Newegg says no separate filing is usually needed, but the business license, registered address, contact details, store name and settlement account in Seller Portal must be accurate, complete and match the real operating entity. The Decree creates no new tax and changes no rates; tax authorities can compare the platform's data with what sellers report.
How a Chinese seller reports overseas business income in China is a question for a Chinese tax adviser or the local tax bureau. The rest of this article covers the U.S. side.
The U.S. side: no 1099 from Newegg, so what counts?
Newegg's seller FAQ (checked November 2026) answers the question of whether sellers get a 1099 at tax time with a no: Newegg is the merchant of record, and sellers can download each settlement in Seller Portal for reference.
The general IRS rule is that a third-party settlement organization issues Form 1099-K to U.S. payees who gave a W-9 and had more than $20,000 and more than 200 transactions in the year, the federal threshold restored by OBBBA. Foreign sellers on a W-8BEN-E are generally outside 1099-K reporting. Platforms differ on whether they treat themselves as the payer; if Newegg starts issuing forms, Seller Portal's tax documents decide.
What matters is your U.S. business activity, not whether a 1099 arrives.
A Chinese company selling directly and shipping from China: if goods ship straight to U.S. customers, title passes outside the U.S., and there is no U.S. warehouse or staff, there is often no taxable U.S. business and U.S. income tax usually doesn't come into play.
A Chinese company selling directly with inventory in SBN: continuous U.S. sales from U.S. warehouses with U.S. delivery are generally a U.S. trade or business producing effectively connected income. The company can claim under the U.S.–China treaty that facilities used solely to store and deliver goods aren't a permanent establishment, but that generally means filing Form 1120-F with Form 8833 on time, and state taxes aren't covered by the treaty.
Selling through a U.S. subsidiary: the subsidiary is a U.S. taxpayer that gives Newegg a W-9 and files Form 1120 at 21% plus Form 5472. With no 1099 from Newegg, it reports all income from the settlement reports.
A foreign owner's single-member U.S. LLC: without a corporate election it is a disregarded entity that files pro forma 1120 + 5472 every year, with a $25,000 starting penalty per missed form. Under the W-9 instructions the foreign owner provides a W-8, and Newegg says the legal name can't be a disregarded entity's.
Why the two sets of numbers should reconcile
Chinese tax authorities see Newegg's quarterly figures: total sales, refunds, platform commissions and fees. In the U.S., the revenue, cost of goods sold and expenses on your 1120 or 1120-F come from the same store's settlement reports. The two will never match exactly, because China's figures are quarterly and the U.S. return is annual, and the platform reports on its own basis. But each difference should be explainable: refunds, U.S. sales tax Newegg collected, exchange rates, and timing differences from the reserved balance.
What we recommend: each month, export settlements and transaction detail from Seller Portal (Reports > Payments > Settlements); book gross sales, then separate referral fees, the $0.29 order fees, membership fees, SBN charges, advertising, refunds, chargebacks and the reserve; keep collected sales tax out of revenue; and at each quarter-end, prepare a reconciliation against the basis Newegg reports. That schedule supports both the U.S. return and any question from Chinese authorities.
Example (hypothetical numbers, to show the method)
Company D in Shenzhen has these Newegg settlements for the third quarter of 2026: customer payments of $330,000, including $20,000 of U.S. sales tax collected by Newegg, $15,000 of refunds, $33,000 of referral and order fees, and $21,000 of SBN charges.
On the platform's basis, Newegg reports roughly total sales (whether tax is included follows the Announcement's definitions), $15,000 of refunds and $54,000 of commissions and service fees. D's books show sales of $310,000 after removing collected sales tax, refunds of $15,000 and platform fees of $54,000. Listing the $20,000 of collected sales tax on the reconciliation explains why the two sales figures differ.
On the U.S. side, D keeps inventory in SBN, so it files its 2026 Form 1120-F with Form 8833 by June 15, 2027 to claim the treaty position; had it sold through a U.S. subsidiary, the subsidiary would file Form 1120 + 5472 by April 15, 2027.
How we can help
YCL handles the U.S. side: which returns you need (1120, 1120-F with 8833, or pro forma 1120 + 5472), monthly books from Newegg settlements, the quarterly reconciliation, and aligning definitions with your adviser in China, who handles the Chinese filings. For Newegg's full requirements, fees and entity choices, see our Newegg guide; for 1099-K reconciliation, the 1099-K guide; for Form 5472, the 5472 guide. Book a free 15-minute call or reach us on WeChat at YCLUSA.
Sources
Newegg Seller Academy: PRC platform tax information reporting notice
IRS: Instructions for Form 1099-K
IRS: Instructions for Form W-9
IRS: Instructions for Form 1120-F
Last checked: November 9, 2026
This article is general tax information, not tax or legal advice for any individual or company. For Chinese tax questions, consult a Chinese tax adviser or the local tax bureau.
Questions this article answers
If I sell only on Newegg.com and not in China, am I still reported to Chinese tax authorities?
Yes. Newegg's notice says sellers whose operating entity is in mainland China, by company registration or an individual's mainland ID, are reported whichever site they sell on. The report covers identity information plus the prior quarter's sales, refunds, commissions and service fees, and transaction count.
Does Newegg issue Form 1099-K to sellers?
Newegg's seller FAQ (checked November 2026) says no, because Newegg is the merchant of record, and points sellers to settlements in Seller Portal. Foreign sellers on a W-8BEN-E are generally outside 1099-K reporting anyway. If Newegg starts issuing forms, Seller Portal's tax documents decide.
With no 1099, does a Chinese company still file a U.S. return?
It depends on how you operate. Shipping straight from China with no U.S. warehouse or staff often means no U.S. income tax; selling continuously from SBN warehouses generally means filing Form 1120-F with Form 8833 to claim the treaty; a U.S. subsidiary files 1120 + 5472; a foreign owner's single-member LLC files pro forma 1120 + 5472.
What if China's reported figures don't match the U.S. return?
They won't match exactly: China sees quarterly figures on the platform's basis, the U.S. return is annual and on a book basis. What matters is that each difference can be explained, such as U.S. sales tax collected by Newegg, refunds, exchange rates and reserve timing. A quarterly reconciliation shared with your adviser in China helps.
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