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China VAT rates May 2016

  • Mar 23, 2016 | Richard Asquith

China VAT rates May 2016

China has published the VAT rates for the latest industry sectors to be included in the VAT overhaul and replacement of Business Tax

The new VAT rates, according the to the State Administration of Taxation from 1 May 2016 will be:

  • Financial services – 11%
  • Consumer services – 6%
  • Real estate – 11%
  • Construction – 11%

The implementation of VAT on these sectors will include businesses to recover input VAT suffered through the production chain – although details for financial services are still missing.

The reform of Chinese VAT, and withdrawal of Business Tax, started in 2012 with a number of pilot cities.  It has since been rolled out across the whole country.  The above sectors are the last to be included.

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.