China’s Value Added Tax (VAT) system applies to the sale of goods, services, and imports. Since replacing the Business Tax (BT) in 2016, VAT has streamlined tax compliance for businesses operating in China.
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VAT rates in China
China’s VAT system includes multiple tax brackets:
| Rate | Type | Examples of Goods & Services |
|---|---|---|
| 13% | Standard | Most taxable goods and services |
| 9% | Reduced | Transportation, catering, restaurants, basic telecommunications, media, publications |
| 6% | Reduced | Financial services, consulting, radio, television |
| 5% | Special | Certain short-term real estate transactions |
| 3% | Simplified | Small-scale taxpayers and certain services |
| 0% | Zero-rated | Exports |
For more information, visit the State Taxation Administration website.