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China VAT rate simplifications

  • May 5, 2017 | Richard Asquith

China VAT rate simplifications

China’s tax authorities have confirmed to proposals to reduce the number of VAT rates from 4 to 3.  Goods such as farm produce, water, coal and gas will be reclassified from 13% to 11%.

The new three-rate band – 17%, 11% and 6% - will come into effect on 1 July 2017.

The annual VAT registration threshold will also rise to Yuan 500,000 from the current Yuan 300,000.

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VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which won International Tax Review's 2020 Tax Technology Firm of the Year. Richard trained as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.