China VAT rates update

Thu 7th Aug 2014

As Chinese VAT reform progresses, below is an update of the major VAT and Business Tax rates in place today.

‘Old’ Chinese VAT rates on goods

Standard Rate: 17%

Reduced Rates: 13% and 6%

Exports: 17% or nil – see export credit scheme

Imports: 17% or 13%

Reformed VAT rates

Postal, Transport, Telecoms voice rates: 11%

IT, Technology, Consulting, Transport & logistics, broadcast, Telecoms data rates: 6%

Business Tax Rates

Awaiting switch to VAT programme.

Entertainment: 5% to 20%

Financial services, real estate and property: 5%

Cultural and sporting events/services: 3%