China Value-Added Tax (VAT) — Rates, Filing & Compliance

China's VAT system is the primary indirect tax, applying to the sale of goods, services, and intangible assets. Understanding VAT rates and filing obligations is essential for any business operating in China.

VAT Rates

• 13% — Standard rate for goods and most tangible products
• 9% — Agricultural products, utilities, transport, construction, real estate
• 6% — Services, technology, financial services, intangibles
• 0% — Exported goods and certain cross-border services
• 3% — Small-scale taxpayers (simplified method)

General vs. Small-Scale Taxpayer

General taxpayers can deduct input VAT and issue special VAT invoices. Small-scale taxpayers (annual revenue < RMB 5M) use simplified 3% rate and cannot deduct input VAT.

Filing Requirements

VAT returns are filed monthly or quarterly, typically by the 15th of the following month. Late filing incurs penalties of 0.05% per day. Digital tax systems (Golden Tax System) issue standardized invoices integrated with tax authority databases.