China VAT / Sales Tax

Detailed vat / sales tax rates and rules for China in 2026.

VAT / Sales TaxCNY

China's value-added tax (VAT) system has three main rates: 13% (standard rate for most goods, manufacturing, and processing), 9% (for transportation, construction, agricultural products, and real estate), and 6% (for services including financial, modern, and lifestyle services). Small-scale taxpayers may use a simplified calculation method with a 3% collection rate. China completed its VAT reform (replacing the business tax with VAT) in 2016, unifying indirect taxation under the VAT system.

Standard Rate

13%

Registration Threshold

Annual taxable sales of CNY 5 million for general VAT taxpayer status; businesses below this threshold are classified as small-scale taxpayers with a simplified 3% rate

Reduced Rates

9% — Transportation, postal services, basic telecommunications, construction, agricultural products, utilities, and real estate6% — Financial services, modern services, lifestyle services, and value-added telecommunications0% — Exported goods and certain cross-border services

How China VAT / Sales Tax compares

China’s standard VAT / sales tax rate of 13% is the 124th highest of 203 countries TaxAtlas tracks, below the global average of 13.7% and Asia’s regional average of 9.6%.