Chinese VAT rates

The standard rate of VAT is 16%. Following the 2012-16 VAT reforms, there are only four VAT rates in China, plus nil rating.

There are other taxes, including Business Tax (3% to 20%) on services. For small entrepreneurs, the VAT rate applicable is 3% with limits on VAT deductions.

Chinese VAT rates

Rate Type Which goods or services
16% Standard All other taxable goods and services since 1 May 2018
10% Standard Retail; entertainment; hotel; restaurants; catering services; real estate and construction, telephony calls; postal; transport and logistic. Since 1 May 2018
6% Standard Financial services and insurance; telephony and internet data; IT; technology; consulting.
3% - Chinese National Education Tax
2% - Chinese Local Education Taxes
6% - City Maintance & Construction
3% - Construction services

In addition to VAT, there are a range of other indirect taxes, including:

  • Stamp Duty
  • Customs Duty on imports and luxury goods
  • City Construction and Maintenance Levy
  • National Education Tax
  • Local Education Tax

Latest Chinese news

China extends e-commerce VAT concessions

November 28,2018

The Chinese State Council has extended the current VAT discount and duty exemption for small value e-commerce imports to consumers.

China VAT refunds to bolster exporters hit by new US tariffs

September 11, 2018

China has announced a further round of tax breaks to aid its exporters. This follows the US proposing new tariffs levying almost $267bn on Chinese imports....

EU VAT obstacles for Chinese companies

September 2, 2018

Chinese enterprises trading across the EU can be hindered by many barriers; particularly EU VAT, which can leave unsuspecting firms facing large fines or...