China VAT Calculator
How Much Is VAT in China?
The standard VAT rate in China is 13% in 2026. Other rates: 9% — Agricultural products, grain, edible oils, tap water, heating, gas, books and newspapers, fertiliser; transport, postal, basic telecoms, construction, real estate, land use rights; 6% — Financial services, modern services (R&D, IT, consulting), value-added telecoms, catering, hotels and other lifestyle services, intangible assets; 0% — Exports of goods and qualifying cross-border services. Locally the tax is called Value-Added Tax (VAT, zengzhishui). Standard VAT/GST rates worldwide range from around 5% to 27%.
How to calculate China VAT
To add 13% VAT to a net (tax-exclusive) price, multiply it by 1.13. To remove VAT from a gross (tax-inclusive) price, divide it by 1.13.
- Add VAT: CNY 100 net × 1.13 = CNY 113 gross (that is CNY 13 of VAT)
- Remove VAT: CNY 113 gross ÷ 1.13 = CNY 100 net (that is CNY 13 of VAT)
Use the China VAT calculator above for any amount, or compare China with every other country in our VAT rates by country table.
China VAT Rates Overview
Every VAT rate currently in force in China
Current VAT Rates (2026)
| Rate type | Rate | Applies to |
|---|---|---|
| Standard rate | 13% | Sales and imports of goods, processing and repair services, leasing of tangible movable property |
| Reduced rate | 9% | Agricultural products, grain, edible oils, tap water, heating, gas, books and newspapers, fertiliser; transport, postal, basic telecoms, construction, real estate, land use rights |
| Reduced rate | 6% | Financial services, modern services (R&D, IT, consulting), value-added telecoms, catering, hotels and other lifestyle services, intangible assets |
| Simplified method (small-scale taxpayers) | 3% (1% until 31 December 2027) | Small-scale taxpayers with annual sales up to CNY 5 million, without input credit |
| Zero rate | 0% | Exports of goods and qualifying cross-border services |
VAT History and Local Rules in China
How the rates got here, and country-specific points to watch
Key VAT milestones
- 2026: VAT Law of the People's Republic of China took effect on 1 January 2026
- 2025: Departure tax refund minimum cut to CNY 200 and instant refund rolled out nationwide
- 2019: Rates cut from 16% to 13% and 10% to 9% on 1 April 2019
- 2018: Rates cut from 17% to 16% and 11% to 10%
- 2016: VAT replaced business tax for all industries on 1 May 2016
- 1994: VAT applied nationwide to goods under the 1994 tax reform
Is the VAT rate the same everywhere in China?
Yes, VAT rates are the same across mainland China, but Hainan Free Trade Port and bonded/free trade zones offer import VAT reliefs, and Hong Kong and Macau have no VAT.
Good to know
Hong Kong and Macau have separate tax systems with no VAT; mainland VAT applies only in mainland China.
The VAT Law effective 1 January 2026 codified the existing regulations, keeping the 13%, 9% and 6% rates; the pandemic-era 1% rate for small-scale taxpayers is extended to 31 December 2027.
Hainan Free Trade Port launched island-wide special customs operations on 18 December 2025, adding zero-tariff and import-VAT reliefs for qualifying goods and offshore duty-free shopping.
Zero-Rated and Exempt Supplies in China
The difference matters: zero-rating keeps input-VAT recovery, exemption does not
Zero-rated supplies (0%)
VAT is charged at 0%, but the seller can still recover input VAT on related costs:
- Exports of goods (with export VAT refund)
- International transport services
- Qualifying cross-border services such as R&D, design and software supplied abroad
VAT-exempt supplies
No VAT is charged, and the seller generally cannot recover input VAT on related costs:
- Agricultural products sold by the producers
- Medical services by medical institutions
- Childcare, elderly care and marriage services
- Educational services by schools (academic education)
- Used goods sold by individuals
- Contraceptives and certain imported research equipment
China VAT Registration & Compliance
Key facts for businesses registering for and reporting VAT in China.
| Local name | Value-Added Tax (VAT, zengzhishui) |
|---|---|
| VAT number format | Unified Social Credit Code: 18 characters (e.g. 91310000MA1FL1234X) |
| Registration threshold | General VAT taxpayer status required once annual taxable sales exceed CNY 5 million; below that businesses are small-scale taxpayers, exempt if monthly sales do not exceed CNY 100,000 |
| Non-resident businesses | No simplified registration regime for foreign businesses; VAT on cross-border services is generally withheld by the Chinese purchaser |
| Filing frequency | Monthly for general taxpayers; monthly or quarterly for small-scale taxpayers |
| Filing and payment deadline | 15th day of the following month (extended for public holidays) |
| E-invoicing / reporting | Fully digitalised electronic invoices (quan dian fa piao) issued through the tax authority's platform, rolled out nationwide |
| Tax authority | State Taxation Administration (STA) |
Thresholds, deadlines and e-invoicing rules are revised regularly. Always confirm current requirements with State Taxation Administration (STA) before relying on them.
Cross-Border Sales and Refunds in China
Selling into the country from abroad, and getting VAT back
Cross-border rules
Digital services and e-commerce: China has no simplified VAT registration for foreign digital service providers; VAT on services and intangibles supplied from abroad is generally withheld by the Chinese customer at 6% (or other applicable rate).
Tourist VAT refunds: Yes: overseas visitors can claim departure tax refunds on purchases of at least CNY 200 per store per day at designated tax-refund shops, with instant refund at the store widely available and a cash refund limit of CNY 20,000.
For the general rules, see the reverse charge mechanism, VAT on digital services, VAT invoice requirements and VAT refunds for tourists and businesses.
Compare VAT Rates
VAT rates in neighboring and similar economies
Nearby Countries
🇦🇺 Australia
Standard Rate: 10%
🇳🇿 New Zealand
Standard Rate: 15%
🇯🇵 Japan
Standard Rate: 10%
🇰🇷 South Korea
Standard Rate: 10%
Frequently Asked Questions
Common questions about VAT in China
What is the current VAT rate in China?
The standard VAT rate in China is 13% in 2026. Other rates in force: 9% (reduced rate), 6% (reduced rate), 3% (1% until 31 December 2027) (simplified method (small-scale taxpayers)), 0% (zero rate). See the rates table above for exactly what each rate covers.
How do I calculate VAT in China?
To add 13% VAT, multiply the net price by 1.13. To remove it from a VAT-inclusive price, divide by 1.13; the difference is the VAT. The calculator at the top of this page does both.
What are China's VAT rates in 2026?
The rates are 13% for most goods, 9% for items such as agricultural products, transport, construction and real estate, and 6% for most modern services. Small-scale taxpayers pay 3%, reduced to 1% until the end of 2027.
What changed with China's new VAT Law?
The VAT Law took effect on 1 January 2026, replacing the provisional regulations with national legislation. It keeps the existing rate structure while clarifying scope, cross-border services and deduction rules.
Can tourists get a VAT refund in China?
Yes. Overseas visitors can claim a refund on purchases of at least CNY 200 per store per day at designated tax-refund shops, with instant refund at many stores and settlement on departure.
Who needs to register for VAT in China?
Registration threshold: General VAT taxpayer status required once annual taxable sales exceed CNY 5 million; below that businesses are small-scale taxpayers, exempt if monthly sales do not exceed CNY 100,000. Foreign businesses: No simplified registration regime for foreign businesses; VAT on cross-border services is generally withheld by the Chinese purchaser.
Sources
Official and professional references used for this page
Last reviewed on 27 September 2026.