China VAT Rate 2026: 13% Standard Rate

How Much Is VAT in China?

The standard VAT rate in China is 13% in 2026, plus reduced rates of 6%, 9% on certain goods and services. It applies to most goods and services sold in China. 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.

Current VAT Rates

Historical VAT Rate Changes

• 2026: Current standard rate in force
• 2019: Standard rate reduced to 13%
• 1994: VAT introduced

Economic Impact

VAT contributes approximately 20-30% to China's total tax revenue. The current rate structure balances revenue generation with economic competitiveness within the Asia-Pacific region.

Zero-Rated Items

The following items are zero-rated for VAT in China:

• Exports of goods and services
• International transportation
• Some basic food items
• Children's clothing
• Books and newspapers
• Prescription medications

VAT Exempt Items

The following are exempt from VAT in China (no VAT charged, no input VAT recovery):

• Financial services
• Insurance services
• Healthcare and medical services
• Education and training
• Postal services
• Charitable activities

Reduced Rate Applications

Items subject to reduced VAT rates in China:

• 6% rate: Modern services, financial services and intangibles
• 9% rate: Transport, postal services, basic telecoms, agriculture and utilities

China classifies businesses above CNY 5 million of annual sales as general VAT taxpayers; smaller businesses are small-scale taxpayers with simplified VAT. Always confirm current thresholds and deadlines with the State Taxation Administration (STA), as they are reviewed periodically.

VAT Registration

• Registration Threshold: CNY 5,000,000 (small-scale vs general taxpayer)
• Voluntary Registration: Available below threshold
• Registration Process: Online via tax authority website
• Processing Time: Typically 2-4 weeks

VAT Returns and Payment

• Filing Frequency: Monthly or quarterly
• Filing Deadline: End of month following period
• Payment Methods: Bank transfer, online payment
• Late Filing Penalties: Varies by amount and delay

Cross-Border Trade

Special considerations for international transactions:

• Intra-EU Trade: Not applicable (non-EU country)
• Imports: VAT payable at point of entry
• Exports: Generally zero-rated
• Digital Services: Special rules may apply

For background on how the buyer accounts for VAT on intra-EU and cross-border B2B supplies, see the reverse charge mechanism. For B2C digital sales and low-value imports, see VAT on digital services and cross-border e-commerce.

Nearby Countries

What is the current VAT rate in China?

The standard VAT rate in China is 13% as of 2026. This applies to most goods and services unless they qualify for reduced rates or exemptions.

How do I calculate VAT in China?

To add VAT: multiply the net amount by 13%. To remove VAT from a gross amount: divide by 1.13. Use our calculator above for instant results.

Who needs to register for VAT in China?

China classifies businesses above CNY 5 million of annual sales as general VAT taxpayers; smaller businesses are small-scale taxpayers with simplified VAT.

Can I reclaim VAT in China?

VAT-registered businesses can generally reclaim input VAT on business purchases. Non-EU tourists may claim VAT refunds on qualifying purchases when leaving the country — see our guide to VAT refunds for tourists and non-resident businesses.