China VAT calculator (增值税)

How 增值税 (VAT) in China is calculated

The **VAT Law of the PRC** (增值税法) took over from the 1993 interim regulations on **1 January 2026** and kept the rates. Article 10: **13%** on goods, processing and repair, and leasing of movable property; **9%** on transport, postal and basic telecoms, construction, real-estate leasing and sales, land-use rights and a listed set of staples — farm produce, utilities, books and newspapers, feed and fertiliser; **6%** on other services and intangible assets; **0%** on exported goods and on cross-border services and intangibles the State Council lists.

**Small-scale taxpayers** — annual taxable sales not over **5 million yuan** (article 9) — pay a 3% levy rate on sales without claiming input tax (article 11). From 1 January 2026 to 31 December 2027 that 3% is cut to **1%** for everything except selling or leasing real estate and transferring land-use rights (MOF/STA Announcement 2026 No. 10). Monthly sales that do not reach **100,000 yuan** (300,000 a quarter) pay nothing; at 100,000 or more, VAT is due on the whole amount, not the excess (article 23).

VAT is charged on the price **excluding** VAT (article 7), so to take it out of a 13% gross price divide by 1.13 — 1,130 yuan includes 130 of VAT. For an overseas seller the Chinese buyer withholds VAT at the rate on the sales amount (article 15); the page shows it as withheld by the buyer, not charged by the seller. Estimate, not tax advice.