How to review contracts, statements and invoices for ecommerce expenses
Connect contracts, delivery evidence, fees, invoices and payments, and assess corporate income tax and VAT conditions separately.
A mainland China ecommerce business may have marketplace commissions, advertising charges and creator fees deducted from settlements or paid separately. A line on a statement does not establish who supplied which service, or by itself satisfy the conditions for corporate income-tax deduction or VAT input credit. Connect the transaction, settlement and evidence first; then assess accounting and tax treatment separately.
This guide is for businesses established in mainland China and their finance teams reviewing domestic ecommerce expenses. Treatment depends on the actual transaction, contracts, parties and applicable rules. Verify overseas services and cross-border payments separately.
Identify the parties and dates
A platform, an agency, a creator and a receiving account can all appear in one arrangement. Do not infer the supplier solely from the name beside a deduction.
- Purchaser and beneficiary: confirm the store operator and the company bearing the expense; distinguish its own expense from payments made on behalf of another entity.
- Service provider and payee: check the contracting party, the actual provider and the payee. Where a platform collects or remits on another party's behalf, retain the agreement, authorization and settlement evidence.
- Invoice issuer: relate the purchaser, issuer, description and amount to the real transaction. If names differ, establish why before drawing a conclusion; do not invent an issuer or treat every difference as unlawful.
- Service and payment dates: the service period, statement period, payment date and invoice date can differ. Determine the accounting period from the facts and the accounting framework applicable to the company.
Connect the evidence for each expense
Start a record for each entity, service and period. Documents need not come from one system, but their relationship should be explainable.
| Evidence | What to reconcile | Common gap |
|---|---|---|
| Contract, order or platform terms | Services, pricing, parties, collection arrangements and settlement cycle | A payment screenshot does not explain the service purchased |
| Delivery records | Advertising reports, promotional links, creator deliverables or platform service details | A contract exists but evidence of delivery for the period is missing |
| Platform bills and settlement detail | Charges, period, amounts, refunds, adjustments and deductions from payouts | The same expense is deducted once from a bill and again from a net payout |
| Invoice or other applicable evidence | Purchaser, issuer, description, amount and connection to the transaction | A different period or amount has no documented explanation |
| Payment and accounting records | Bank entries, platform deductions, accounting entries and responsible person | Payment date is used as a substitute for the period of service |
For example, a store's advertising charge may be deducted by a platform while an agency helps manage campaigns. Confirm the contracts, actual providers, deductions and invoicing arrangements for the advertising and agency services separately. A platform deduction shows how settlement occurred; it does not by itself prove an agency's receipt, service scope or proper invoice issuer. Other arrangements must be assessed from their own evidence.
Assess corporate income tax and VAT separately
For corporate income tax, State Taxation Administration Announcement 2018 No. 28 requires deduction evidence to be authentic, lawful and connected to the expense, and calls for supporting contracts, payment evidence and related records to be retained. The appropriate evidence for a domestic taxable expense depends on the counterparty and circumstances. The announcement also addresses replacement of non-compliant documents and specified exceptional cases. Obtaining an invoice alone does not prove that the full expense is deductible.
VAT input credit is a separate question. Check the taxpayer's applicable VAT method, valid credit evidence, the use of the purchase and other conditions. The PRC VAT Law, effective 1 January 2026, sets out requirements for credit evidence and situations in which input VAT cannot be credited. An ordinary invoice is not automatically a creditable VAT document. An unavailable input credit does not by itself determine the corporate income-tax treatment.
The sources were checked on 28 October 2026. Apply the rules effective for the transaction period to the company's facts. Arrangements involving collection on behalf of another party, individual creators or overseas services may require further review by the responsible professional.
Resolve differences without rewriting the evidence
Record the entity, service period, missing document, unexplained amount and the person or counterparty who can investigate. Check refunds, timing differences, consolidated invoicing or collection arrangements before drawing conclusions. Do not alter original records merely to make totals agree. Where required evidence is missing or non-compliant, approach the relevant party promptly and consider the appropriate remedy. Accounting or return corrections depend on the facts and applicable rules.
Start with one expense category and period, bringing together its contracts, statements, invoices and payment records. The CaiGeek tax and compliance example illustrates how to frame a specific question; it does not mean your company's review has been completed. You can also read reconciling platform-reported revenue and receipts, or use the official contact page to discuss an appropriate product or service arrangement. Share company records only through an authorized channel, not in public comments.
Written with AI assistance. Examples illustrate analysis methods; apply them using business records and relevant conditions.
Move the work forward with CaiGeek.
Start with your question, supported by business context, data and memory.