Quick overview
| Standard Rate | Reduced Rate | Other Rates |
| 13% | 3, 5, 6 and 9% |
The local name for VAT in China is Zeng Zhi Shui.
There are basically 5 VAT rates in China:
- Standard VAT rate is 13%
- Reduced VAT rate is 3%, 5%, 6% and 9%
Recent developments
For more information about (recent) rate change developments in China, please click HERE.
Standard rate: 13%
This rate applies for all transactions that take place in China, unless an exception applies (such as a reduced rate, the zero rate or an exemption, or a reason to treat the transaction as outside scope of VAT).
Zero rate (0%)
.. applies various exemptions with a refund of tax paid at preceding stages (zero rates), such ..
Reduced rate: 3%
- Certain taxable used goods
- Consignment goods sold by consignment agencies
- Certain goods sold by pawnbrokers
- Specific duty-free items sold by duty-free shops
- Certain electricity produced by qualified hydroelectric-generating businesses
- Certain construction materials
- Certain biological products
- Tap water (rate applies if taxpayer chooses simplified computation method with no input tax recovery)
- Certain concrete cement goods sold by general taxpayers
- Non-academic education services
- Interest income from agricultural loan provided by Agricultural Development Bank of China and its affiliates
- Certain rare disease drugs (orphan drugs)
Reduced rate: 5%
- Labor dispatching service
- Human resource outsourcing service
Reduced rate: 6%
- R&D and technology services
- Information and technology services
- Culture and creative services
- Logistics supporting services
- Authentication and consulting services
- Radio, film and television services
- Business supporting services
- Other modern services
- Value-added telecommunication services
- Loan services
- Direct financial services
- Insurance services
- Financial product trading
- Cultural and sports services
- Education and medical services
- Tourism and entertainment services
- Catering and accommodation services
- Daily services
- Other lifestyle services
- Sales of intangible assets
Reduced rate: 9%
- Agricultural products (including grains)
- Tap water
- Heating
- Liquefied petroleum gas
- Natural gas
- Edible vegetable oil
- Air conditioning
- Hot water
- Coal gas
- Coal products for household use
- Food-grade salt
- Farm machinery
- Fodder, pesticides
- Agricultural film
- Fertilizer
- Methane gas
- Dimethyl ether
- Books
- Newspapers
- Magazines
- Audiovisual products
- Transportation services
- Postal services
- Basic telecommunication services
- Construction services
- Sales of immovable properties acquired or developed after 1 May 2016
- Leasing of immovable properties acquired or developed after 1 May 2016
- Transfer of land use right
To note:
- Some goods and services taxable at the different rates, for small-scale taxpayers
- Some goods and services are exempted without the right to VAT credit
A global VAT/GST rate overview can be found here (note this is a work in progress).
This post was last updated on August 10, 2021.
