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What have been the most recent changes to China’s VAT regime?

As of 1 May this year, the 17% and 11% VAT rates previously applicable to the supply of certain goods and services were reduced to 16% and 10% respectively. In line with the changes announced by the Ministry of Finance (MOF) and the State Administration of Taxation (SAT), the new VAT rates are laid out in the table below:


Small-scale Taxpayers (and general taxpayers who qualify for the use of the simple tax computation method):

Simple Tax ComputationVAT Rate
Sale of goods or labour services, such as processing, repair or maintenance; sale of taxable services and intangible assets by small-scale taxpayers3%
Sale of immovable property, leasing of immovable property5%


All Other General Taxpayers:

TypeTaxable ItemsVAT Rate
Sale of goodsSale or importation of goods (except goods listed elsewhere); sale of labour services16%
Sale or importation of agricultural products, such as grains, liquefied petroleum gas, books or publications10%
Sale of servicesTransportation services10%
Postal services10%
Basic telecommunications services10%
Value-added telecommunications services6%
Construction services10%
Sale of immovable property10%
Financial services6%
R&D and technical services6%
Information technology services6%
Cultural and creative services6%
Logistics services6%
Authentication and consultation services6%
Broadcast, film and TV services6%
Commercial services6%
Tangible movable property leasing services16%
Immovable property leasing services10%
Other modern services6%
Everyday services: cultural, sport, education, medical, tourism, entertainment, catering, accommodation, domestic and other services6%
Sale of intangible assetsTechnology transfer, trademark, copyright, goodwill and other assets6%
Land-use rights10%


For further details, please visit the following links:

VAT Rates Reduced Across China as of May 2018

VAT Rates Table 2018 (in Chinese)

Content provided by Picture: HKTDC Research
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