Below is a table outlining the VAT rates in China:
| Category | VAT Rate | Details |
|---|---|---|
| Standard VAT Rate | 13% | Applies to most goods and services, including manufacturing, importation, and wholesale/retail distribution. |
| Reduced VAT Rate | 9% | Applies to sectors like transportation, postal services, construction, and certain agricultural products. |
| Lower VAT Rate | 6% | Applies to specific services such as finance, education, healthcare, and real estate. |
| Zero-Rated VAT | 0% | Applies to specific goods and services, primarily exports and some cross-border services. |
| Exempt from VAT | N/A | Certain goods and services are exempt, including certain agricultural products, contraceptives, and ancient books. |
Additional Notes:
- VAT Reform: China has undergone several VAT reforms in recent years, reducing the standard VAT rate from 16% to 13% in April 2019.
- VAT Registration: Businesses with a certain level of annual sales are required to register for VAT in China.
- VAT Filing: VAT returns are typically filed monthly, and the tax authorities closely monitor compliance.