China VAT Overview
China VAT is applicable to the sales or importation of goods, and the provision of related processing, repairs and replacement services. VAT in China is charged at a standard rate of 17% , but tax rate for necessity goods, such as agricultural items, water and gas, etc. is reduced to 13%. If your company is a small-scale taxpayers, the tax rate is 3%. When computing the VAT payable, the input VAT incurred may be credited against output VAT.
When exporting goods from China, you might be entitled to a refund of VAT incurred on materials purchased in China. The refund rates range from 0% to 17%. (To determine your actual amount of refund, check with ChinaLegalExpress to see if your products obtain the full refund of input VAT credit and how we can help you avoid suffering export VAT loss.)
China has launched a Pilot Program from 2012 to expand the scope of VAT to cover selected industries that were originally subject to business tax. The applicable VAT rates (for general VAT taxpayers) are listed in the following table: