Shenzhen VAT service provider ran away, thousands of tax numbers were affected!

As the end of the year approaches, it is a time of great event!

While sellers are working hard to prepare for the peak season, problems have arisen in the rear. Recently, someone reported to Een.com that a VAT service provider in Shenzhen had run away, leaving its office empty. Sellers are facing problems such as tax number cancellation and sales restrictions, and a number of employees are in arrears of wages.

A VAT service provider in Shenzhen closed down and the office was deserted

In this industry, we often hear about various “runaways”: freight forwarders running away, platforms running away, service providers running away…

Recently, someone broke the news that a VAT service provider in Shenzhen, Shenzhen XX Cross-border Service Co., Ltd., had run away. As the editor learned more about it, more problems were exposed.

Recently, a seller reported that the XX cross-border service provider he cooperated with had not given him a VAT declaration receipt, which made him very anxious. Subsequently, more sellers reported that they had encountered the same problem. After asking many times, the other party did not reply to the message, and they were worried that there was something wrong with this service provider. One seller said that they were supposed to declare in August in the UK , but after waiting for a long time, they still did not receive any notification from XX cross-border service provider in November.

Just when the sellers were worried, the news of "XX cross-border bankruptcy" came out.

"Now we can't contact them at all." A seller said: " They called us to come over to take over, but when we got there we found that their company had already moved out and there was no one there. "

According to insiders, there were signs that XX Cross-border would go bankrupt and run away long ago.

According to him, earlier this year, XX Cross-border laid off a group of old employees and then quickly recruited a group of new employees. At the same time, it also urgently collected a wave of agency fees from sellers whose renewal period had not yet arrived.

As XX Cross-border ran away, it was not only the sellers who were affected, but also its employees who were "hurt". According to a former employee of XX Cross-border, XX Cross-border has laid off all its employees, but still owes many people their salaries, most of which are owed for 2 to 3 months. Now some people have gone to labor arbitration.

Thousands of sellers’ tax numbers affected, facing risk of suspension of sales

The above-mentioned person familiar with the matter said that as XX runs across borders, thousands of tax numbers of the sellers it cooperates with will be affected.

"What they mean now is that they won't do it anymore. They won't refund the money and won't care about those who have already paid but haven't received the service yet." The insider said: "XX Cross-border has handed over the sellers whose services have not been completed to another agency, but the premise for this agency to provide services is that the sellers have to pay separately."

According to a seller, this is indeed the case. "They handed over our tax numbers to other tax agents. Our service has not expired yet, but the tax agent who took over said that we can only pay to continue filing."

"Now many people are speculating whether this is another trick of theirs. One is to cooperate with this new tax agent to make more money, and the other is to force those sellers whose services they have not completed to find other tax agency services." said the insider.

In fact, this speculation is not without reason. According to other VAT agency companies, if the seller's VAT has not been declared , there will be a fine in the short term, and in the long term there will be a risk of being judged as an invalid tax number by the tax bureau, and finally the platform will stop selling to the seller.

Not only that, the seller had a more difficult problem to deal with. Because XX Cross-border owed fees to the cooperating accounting firm, the accountant had been holding the seller's tax number. Not only that, because he was afraid of taking responsibility, the accountant also cancelled the seller's tax number.

"XX Cross-border now refuses to give us a tax number, saying that the accountant won't give it to us." A seller revealed that XX Cross-border now owes the cooperating accounting firm several million and has yet to settle the debt.

Eurotax provides free services to affected sellers

In response to the above situation, we consulted some leading tax service companies. Among them, after learning the details, Oushuitong held an emergency meeting and gave us feedback as soon as possible, and was willing to provide free services to all affected sellers.

"If they have already paid to XX Cross-border but have not yet received the service or the service has not expired, they can transfer to us and we will do it for these sellers for free." A relevant person in charge of Europe Tax Link told Yien.com.

No matter what type of service company you choose, strength is very important. This will not only provide a good service experience, but also help you avoid the above-mentioned absconding incidents to a large extent. This "strength" includes funds, technology, and personnel. As a tax agency, Oushuitong is not lacking in these aspects.

1. Strong financial strength. In September last year , Oushuitong officially announced that it had completed a financing of tens of millions of RMB, with this round of financing led by Yibaizhongliu, Jiaqiao Capital and Qili Development.

2. A SaaS platform with VAT self-declaration . The platform can provide point (sellers) to end (multiple European countries) VAT self-declaration services for the majority of European cross-border sellers . On the platform, sellers can directly participate in and understand the entire process of tax number registration and declaration, and experience the efficiency and convenience of "one-click declaration".

3. The team is a fusion of professional tax teams and IT elites . Currently, the European Tax Team has 200 people, of which one of the two founders has more than 20 years of experience in tax software practice and management, and the other is a senior practicing accountant and tax accountant in China, and a recipient of the second batch of national accountant titles.

If you are an affected seller, or want to seek services from Eurotax, please add WeChat: xuan419004

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