China to combine VAT rates
- Nov 26, 2016 | Richard Asquith
China has indicated that it plans to reduce the number of VAT rates to simplify compliance. This is likely to mean the consolidation of the main 11% and 6% rates – although no details have been provided yet.
The current Chinese rates are:
- 11% Retail; entertainment; hotel; restaurants; catering services; real estate and construction, telephony calls; postal; transport and logistic.
- 6% Financial services and insurance; telephony and internet data; IT; technology; consulting.
- 3% Chinese National Education Tax
- 2% Chinese Local Education Taxes
- 7 % City Maintance & Construction
The above VAT rate replaced the old VAT and Business Tax regime between 2012 and 2016.