VAT Rates
- 13% — Standard rate for goods and most tangible products
- 9% — Agricultural products, utilities, transport, construction, real estate
- 6% — Services, technology, financial services, intangibles
- 0% — Exported goods and certain cross-border services
- 3% — Small-scale taxpayers (simplified method)
General vs. Small-Scale Taxpayer
General taxpayers can deduct input VAT and issue special VAT invoices. Small-scale taxpayers (annual revenue < RMB 5M) use simplified 3% rate and cannot deduct input VAT.
Filing Requirements
VAT returns are filed monthly or quarterly, typically by the 15th of the following month. Late filing incurs penalties of 0.05% per day. Digital tax systems (Golden Tax System) issue standardized invoices integrated with tax authority databases.