China VAT Guide 2026: Rates, VAT Number, Returns & Refunds for Foreign Businesses

China value added tax is a transaction tax charged on taxable sales and imports, with credit mechanisms that can move tax through a supply chain. On January 1, 2026, the Value-Added Tax Law replaced the former provisional regulations, putting the core rules for VAT in China on a statutory footing. Foreign-owned companies, overseas buyers, importers, and exporters need to understand the China VAT rate, taxpayer status, evidence, filing, and refund rules before agreeing prices or shipping goods. This China VAT guide explains the value added tax framework and directs readers to the detailed operating guides where appropriate.

1. China VAT rates in 2026

The correct China VAT rate depends on the actual supply, not the seller’s preferred description. The national law sets three principal VAT rate bands, a zero rate for qualifying cross-border activity, and collection rates for simplified calculation.

VAT rate or collection rate	Typical scope in 2026	Practical point
13% VAT rate	Most goods; processing, repair, and replacement services; movable-property leasing; most imports not in another band	Common for trading and manufacturing, subject to product classification
9% VAT rate	Transport, postal, basic telecom, construction, real-estate leasing and transfers, land-use rights, and specified goods such as agricultural products and books	Confirm both transaction type and any product-specific rule
6% VAT rate	Most other services, including many modern, financial, lifestyle, and value-added telecom services, plus many intangible assets	Common for consulting and professional services
Zero VAT rate	Qualifying exported goods and specified cross-border services or intangible assets	Zero-rated treatment is not the same as a general exemption and requires evidence
3% collection rate	Simplified calculation for small-scale taxpayers and specified general-taxpayer projects	Eligible small-scale taxpayers pay at 1% through December 31, 2027, except excluded transactions
5% collection rate	Certain simplified real-estate sales and leasing transactions	This is a collection rate, not a new general China VAT rate

The statutory 3% rate and temporary 1% treatment must be stated together in a 2026 analysis. For eligible small-scale transactions other than sales or leasing of real estate and transfers of land-use rights, the 3% collection rate is reduced to 1% from January 1, 2026 through December 31, 2027.

2. General taxpayer vs small-scale taxpayer

Taxpayer status determines how VAT in China is calculated and whether input VAT can be credited. A small-scale taxpayer generally has annual taxable sales of RMB 5 million or less, measured cumulatively over an operating period of no more than 12 consecutive months or four quarters. A business above the threshold is generally managed as a general taxpayer. A business below it may voluntarily register as a general taxpayer if it has sound accounting records.

Issue	General taxpayer	Small-scale taxpayer
Main calculation	Output VAT minus eligible input VAT	Sales multiplied by the collection rate
Rate basis	Relevant 13%, 9%, or 6% VAT rate	Statutory 3%; eligible transactions temporarily at 1%
Input VAT credit	Available when the legal and documentary conditions are met	Not available under simplified calculation
Invoicing	Can issue regulated VAT invoices	Can issue general invoices and, where allowed, special invoices under the applicable rules
Usual filing cycle	Monthly	Quarterly by default, or monthly

Crossing the RMB 5 million threshold is not merely a year-end issue: the rolling-period calculation matters. Under the 2026 registration rules, compulsory general-taxpayer status generally takes effect from the first day of the period in which the threshold is exceeded, while voluntary registration takes effect from the first day of the registration period.

3. China VAT number: what foreign buyers should verify

For a registered Chinese company, the China VAT number is the 18-character Unified Social Credit Code (USCC). The business does not receive a second, separate corporate VAT identifier. The USCC on the business license is also the taxpayer identification number shown on its regulated VAT invoices. A China VAT number should always be matched to the supplier’s full legal Chinese name.

Use this four-step verification process before treating a China VAT number or invoice as reliable; our VAT invoice guide explains the document types and correction process:

1. Obtain the business license. Read the legal name and 18-character USCC directly from the license.
2. Check the company record. Search the legal name or China VAT number in the National Enterprise Credit Information Publicity System and confirm that the code, name, and registration status match.
3. Verify an invoice sample. Ask for a recent special VAT fapiao and check it on the National VAT Invoice Verification Platform. The platform requires its ChinaTaxRootCA root certificate on first use and limits each invoice to five checks per day.
4. Confirm taxpayer status. If pricing or recoverability depends on general-taxpayer status, request the supplier’s supporting record or confirm it through the relevant provincial electronic tax bureau. GSXT confirms the China VAT number and corporate record, but does not itself display general-taxpayer status.

The checks serve different purposes. A valid China VAT number confirms identity; a valid fapiao helps confirm a regulated tax document; and general-taxpayer status affects the supplier’s VAT method. None of these replaces evidence that the underlying transaction actually occurred. For invoice types, digital invoices, and red-letter corrections, use our detailed China fapiao and VAT invoice guide.

4. How VAT works: input VAT and output VAT

Under the general method, VAT payable = current-period output VAT − current-period input VAT. Output VAT is taxable sales multiplied by the applicable VAT rate. Input VAT is the tax paid or borne on purchases of goods, services, intangible assets, or real estate, but it is creditable only when both substance and documentation satisfy the rules.

Common non-creditable input items include purchases linked to simplified-tax or VAT-exempt projects, abnormal losses, collective welfare, and personal consumption. The 2026 law changes an important boundary for dining, resident daily-life, and entertainment services: input VAT is disallowed when those services are purchased and directly consumed. When they are genuinely used as an operating input—for example, a travel operator buying meals for a customer itinerary—the input may be creditable if all other conditions are met.

The 2026 law also puts the excess input VAT refund mechanism into statute: when input VAT exceeds output VAT, a qualifying taxpayer may carry the balance forward or apply for a refund under the implementing rules. For a single long-term asset with an original value of RMB 5 million or less that is used for both creditable and non-creditable purposes, the 2026 rules allow a full input credit; larger mixed-use assets are subject to annual adjustment.

5. China VAT Returns: Filing Periods, Deadlines and Refund Process

A general taxpayer normally submits a China VAT return every month. A small-scale taxpayer normally files quarterly by default, although monthly filing can apply. The standard deadline is within 15 days after the end of the relevant month or quarter. Statutory holidays can extend a particular deadline, so businesses should follow the annual calendar and the date shown in the electronic tax bureau rather than reuse a fixed reminder.

Taxpayer	Typical period	China VAT return deadline
General taxpayer	Monthly	Within 15 days after month-end, subject to holiday extensions
Small-scale taxpayer	Quarterly by default, or monthly	Within 15 days after quarter-end or month-end
Per-transaction taxpayer	Per transaction or day	File as required when the threshold is reached

A company with no revenue still has to submit a zero VAT return while the filing obligation remains active. Six consecutive months of zero filing may trigger closer tax review, and prolonged non-compliance can contribute to abnormal-taxpayer treatment. Late tax accrues a surcharge of 0.05% per day; a late return can also lead to an order to correct and statutory fines. For ledgers, filing controls, and service scope, see the China bookkeeping and accounting guide.

6. Import VAT in China

Customs collects import VAT at the border; the local tax bureau does not collect that import-stage amount. The tax point is the day the goods are declared for import, and the customs payment document generally must be paid within 15 days after Customs issues it.

For goods not subject to consumption tax, the composition value is CIF customs value + customs duty. For goods subject to consumption tax, it is customs value + customs duty + consumption tax. Import VAT equals that composition value multiplied by the VAT rate applicable to the same kind of domestic goods.

A general taxpayer may credit eligible import VAT using the customs import VAT special payment certificate after the tax and customs records match. The operating path is generally New Electronic Tax Bureau → Tax Digital Account → Invoice Services → Credit Selection → Customs Payment Certificate. China now applies “match before credit”; the former 360-day authentication limit was removed, but the document still needs to be selected and confirmed for the relevant return period.

7. China VAT refund for exports

The China VAT refund system prevents qualifying exports from carrying domestic value added tax, but it is an evidence-led process rather than an automatic payment. The two main methods are:

Method	Typical taxpayer	Core treatment
Exemption-credit-refund	Production enterprise exporting self-produced or deemed self-produced goods	Exports are exempt; eligible input first offsets domestic output VAT, and the refundable balance is then determined
Exemption-refund	Foreign-trade enterprise exporting purchased goods	Exports are exempt; eligible input attributable to the purchased exports is refunded under the applicable rate

A China VAT refund claim needs a four-part evidence chain: a valid purchase special VAT fapiao or customs import VAT payment certificate, an export customs declaration showing actual exit, compliant foreign-exchange receipt evidence, and sales accounting under the accounting rules. Production and trading structures therefore need different controls. See the China trading company setup guide and the FICE trading WFOE guide for entity and operating context. Hainan-based exporters can also review EF accounts and cross-border settlement when planning the receipt evidence trail.

The export tax rebate rate is determined by the product’s HS Code and can differ from its domestic VAT rate; any rate gap becomes part of export cost. Check the applicable rate through the electronic tax bureau or a customs broker using the current HS Code. Do not assume a uniform export tax rebate percentage.

Without a valid purchase document, an exporter cannot claim the China VAT refund. An eligible transaction may instead be reported as exempt within 36 months. If the applicable treatment is not reported within that period, it is treated as a domestic sale and taxed at the domestic rate. The ordinary first filing window runs from the month after export through VAT filing periods before April 30 of the following year; later filing may remain possible within the 36-month limit when the evidence and foreign-exchange documents are complete. If required receipts are not obtained by the following April 30, previously received relief must be repaid under the applicable rule.

For a complete, step-by-step walkthrough of rates, calculations, documents, and deadlines, see our China Export Tax Rebate Guide 2026.

8. VAT Exemption for Small Businesses

From January 1, 2026 through December 31, 2027, a qualifying small-scale taxpayer can use the following national relief:

Filing basis	Exemption threshold	What happens at the threshold
Monthly	Sales of no more than RMB 100,000	If the threshold is reached, tax applies to the full amount, not only the excess
Quarterly	Sales of no more than RMB 300,000	The same full-amount rule applies
Per transaction or per day	Sales of no more than RMB 1,000	From 2026, the threshold applies to small-scale taxpayers, not only individuals

The threshold exemption and the temporary 1% collection rate are separate measures. The nationwide limits apply in Hainan as well; there is no separate doubled Hainan small-business VAT threshold. Certain natural-person transactions—including specified property leasing and platform-work arrangements—use the monthly threshold rather than the per-transaction rule.

9. VAT in the Hainan Free Trade Port

VAT in the Hainan Free Trade Port remains governed by the national system. Hainan has no separate VAT rate, taxpayer threshold, or general VAT exemption. Four distinctions prevent expensive planning errors:

1. The 30% processing-value rule is a customs-duty rule. Qualifying goods processed in Hainan and entering mainland China may receive an import-duty exemption when the value-added test is met; domestic VAT and consumption tax still apply.
2. Zero-tariff import treatment does not erase domestic VAT. The current Hainan scope is commonly described as about 6,600 tariff lines, covering roughly 74% of goods, subject to the latest Customs list. Eligible imports can be exempt from import duty, import VAT, and import consumption tax, while later domestic circulation remains subject to VAT.
3. Sales tax has not replaced VAT in Hainan. Although Hainan Free Trade Port legislation contemplates a simplified sales tax, as of September 2026 it remains under study, has not been implemented, and has no announced implementation timetable. China VAT returns and payments therefore continue after customs closure.
4. Hainan’s headline tax incentives are separate from VAT. The best-known programs concern a conditional 15% corporate income tax rate and a 15% individual income tax burden cap. Read the Hainan 15% corporate income tax guide and the Hainan Free Trade Port complete guide before modelling eligibility.

10. A practical China VAT control checklist

Before signing or invoicing a transaction, identify the actual supply, applicable VAT rate, taxpayer status, price on a tax-inclusive or tax-exclusive basis, and required invoice. Before claiming an input credit or VAT refund, match the contract, delivery or customs record, payment, statutory tax document, and accounting entry. Before each China VAT return, reconcile output invoices, sales, receipts, selected input credits, customs certificates, and the ledger.

Foreign management should treat the China VAT number as an identity field, not proof of a transaction; a valid invoice as a statutory document, not proof that every credit condition is met; and a zero-rated export as a treatment requiring a complete evidence file. Those three distinctions make VAT in China much easier to control.

FAQ: China VAT questions foreign businesses ask

What is the VAT rate in China for 2026?

China’s statutory VAT rates in 2026 are 13% for most goods and certain services, 9% for specified goods and services, and 6% for most other services and intangible assets. A zero rate applies to qualifying exports and specified cross-border supplies. Simplified calculation uses a statutory 3% collection rate, with eligible small-scale taxpayers temporarily paying at 1% through December 31, 2027. Certain simplified real-estate transactions use 5%.

What is a China VAT number and is it the same as the unified social credit code?

For a registered Chinese company, the China VAT number is its 18-character Unified Social Credit Code, or USCC. China does not issue a separate corporate VAT identifier like some jurisdictions do. The same USCC appears as the taxpayer identification number on the business license and VAT invoices. Foreign buyers should match the legal Chinese name and code against the National Enterprise Credit Information Publicity System before relying on them.

How can a foreign company verify a Chinese supplier’s VAT number and fapiao?

Obtain the supplier’s business license and match its legal name and 18-character USCC on gsxt.gov.cn. Ask for a recent special VAT fapiao sample and verify its details at inv-veri.chinatax.gov.cn. First-time users of the invoice platform must install its root certificate, and each invoice can be checked up to five times per day. Finally, obtain or independently confirm the supplier’s general-taxpayer status where that status matters to the transaction.

What is the difference between a general taxpayer and a small-scale taxpayer in China?

A general taxpayer normally calculates VAT as output tax minus eligible input tax and applies the relevant 13%, 9%, or 6% rate. A small-scale taxpayer normally uses simplified calculation and cannot credit input VAT in the same way. The small-scale threshold is annual taxable sales of RMB 5 million or less, measured over a rolling period of up to 12 months or four quarters. Voluntary general-taxpayer registration may be available below that threshold.

When is the China VAT return due and how often do I file?

General taxpayers normally file a China VAT return monthly. Small-scale taxpayers normally file quarterly, although monthly filing may apply. The standard deadline is within 15 days after the end of the month or quarter, and official holiday arrangements can extend it. A registered business must still submit a zero return when it has no taxable revenue. Repeated zero filing may attract attention, so confirm the filing calendar shown in the electronic tax bureau.

Can foreign businesses deduct input VAT in China?

A Chinese entity registered as a general taxpayer can deduct eligible input VAT when it has a valid statutory credit document, the purchase supports creditable taxable business, and the required use-confirmation and filing steps are completed. Non-creditable categories include simplified-tax, exempt, abnormal-loss, collective-welfare, and personal-consumption items. From 2026, dining, daily-life, and entertainment services are disallowed when directly consumed; genuine operating use may qualify under the new rule.

How does the China export VAT refund (export tax rebate) work?

A qualifying production enterprise generally uses the exemption-credit-refund method: exports are exempt, input VAT first offsets domestic output VAT, and eligible excess may be refunded. A qualifying foreign-trade enterprise generally uses the exemption-refund method, under which eligible input VAT attributable to purchased exports is refunded. The China VAT refund rate follows the product’s HS Code and may differ from the domestic rate. Complete purchase, customs, foreign-exchange receipt, and accounting evidence is essential.

What happens if I export goods from China without a valid purchase fapiao?

Without a valid special VAT fapiao, customs import VAT payment certificate, or another permitted purchase document, the exporter cannot claim the export VAT refund. An eligible export may instead be reported under the exemption rules within 36 months. If the relevant treatment is still not reported by the end of that period, the export is treated as a domestic sale and taxed at the applicable domestic rate. Evidence should therefore be checked before shipment.

Is VAT different in the Hainan Free Trade Port?

No separate Hainan VAT rate applies: the national VAT law, rates, taxpayer rules, and small-business thresholds govern VAT in the Hainan Free Trade Port. Hainan’s 30% processing-value rule provides a customs-duty benefit, not a domestic VAT exemption. Eligible zero-tariff imports may be exempt from import duty, import VAT, and import consumption tax, but later domestic circulation remains subject to VAT. As of September 2026, a proposed sales tax has not been implemented.

Do small businesses and startups need to pay VAT in China?

They may. Through December 31, 2027, a small-scale taxpayer with monthly sales of no more than RMB 100,000, or quarterly sales of no more than RMB 300,000, can qualify for the threshold exemption. Once the threshold is reached, VAT is calculated on the full amount rather than only the excess. The per-transaction or per-day threshold is RMB 1,000. Filing obligations can continue even when no VAT is payable.

Official and primary references

• Value-Added Tax Law of the People’s Republic of China — State Taxation Administration
• VAT preferential-policy transition measures, Announcement No. 10 of 2026 — Ministry of Finance and State Taxation Administration
• General-taxpayer registration rules, STA Announcement No. 2 of 2026
• Export VAT refund and exemption rules, Announcement No. 11 of 2026 — Ministry of Finance and State Taxation Administration
• Excess input VAT refund policy, Announcement No. 7 of 2025 — Ministry of Finance and State Taxation Administration
• 2026 tax filing calendar — State Taxation Administration
• National VAT Invoice Verification Platform
• National Enterprise Credit Information Publicity System
• Hainan FTP policy briefing, May 15, 2026 — Hainan Provincial Government

Last reviewed: September 10, 2026. Tax treatment depends on the transaction, taxpayer status, evidence, and current implementation. Confirm the current filing calendar and transaction-specific rules before acting.

For implementation, connect these obligations to our bookkeeping, tax filing and payroll service so the company has one recurring compliance process.