Chinese VAT compliance and rates

Chinese VAT compliance

There are detailed rules controlling the recording and processing of Chinese activities. These include guidelines on:

  • Chinese invoice requirements (including authorised software for producing invoices);
  • Foreign currency reporting and translation;
  • Credit notes and corrections; and
  • The correct format of accounting records.

Chinese VAT returns

VAT settlement and reporting periods vary enormously in China, depending on the goods.  They can be immediate, or stretch to quarterly.

For short-term reporting periods, the tax should be remitted within 5 days.  For monthly or quarterly reporting cycles, VAT should be settled 15 days after the period end.

Vat refunds in China

There is no facility for the refund of Chinese VAT to non-residents.


Chinese VAT rates

The standard rate of VAT is 17 % .  There are other taxes, including Business Tax (3% to 20%) on services. There is also a reduced rate of 13% applied to: basic foodstuffs; agricultural products and other items. For small entrepreneurs, the VAT rate applicable is 3% with limits on VAT deductions.

Chinese VAT Rates

Rate Type Which goods or services
17% Standard All other taxable goods and services
13% Standard Certain agriculture produce, cereals, edible vegetable oils, books, newspapers, magazines, public water supplies and heaters.
11% Standard Retail; entertainment; hotel; restaurants; catering services; real estate and construction, telephony calls; postal; transport and logistic.
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
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