How To Register for Value Added Tax (VAT) In China

How To Register for Value Added Tax (VAT) In China

  • Enterprises, their branches, and the locations engaged in business or production that are established by companies located in different locations industrial and commercial homes and other institutions involved in business or production (hereinafter all known as taxpayers involved in business or production) must, within thirty days after the date that when the license for business is granted make an application to the tax authorities for registration of tax by presenting the appropriate documents. Tax authorities will within 30 days of the date on which the application is accepted and issue an tax registration document following review and verification of the documents.
  • The departments of administration for commerce and industry should keep the tax authorities informed about their treatment of registration and issuing business licenses following exam.

Documents that are required Register for Value Added Tax

  • A commercial and industrial business license, or another similar business permit
  • An agreement, contract or articles of association
  • The unifying organizational code
  • A passport, ID card, or other valid ID proof from the representative of legal or the responsible member of the owner
  • Other documents and documents are also required by tax authorities of the autonomous region, province or municipal directly under the state council. State Council

Office Locations and Contacts

The State Administration of Taxation Address Yangfangdian Road, Haidian District on the 5th
Zip: 100038
Tel: 010-63417114

State Administration for Industry and Commerce People’s Republic of China
Address: 8 Sanlihe Donglu, Xichengqu, Beijing, 100820, P. R. China
Phone: +86-10-68010463/68013447
Facsimile: +86-10-68010463/68013447

What Are All The Eligibility

As per The Provisional Regulation of P.R.C on VAT, Value-added Tax is due by companies or individuals who sell goods or provide processing, repair or assembling services or import products within the borders of People’s Republic of China on the value added from their manufacturing, selling products, offering industrial repairing or assembly services.


There are two types of VAT tax payers in China as per the criterion of sales turnover and services, as well as the conditions of the accounting system. One is the normal taxpayer and the other is a small taxpayer. The criteria of decision for Small Taxpayers is

  • when the taxpayer is engaged in the manufacturing of goods or the provision of tax-deductible services as the sole or primary company and his annual turnover is not less than RMB 1,000,000;
  • or when the taxpayer is engaged in the retail or wholesale of goods , and his annual turnover is not less than RMB 1,800,000.

However, a Small taxpayer who has a well-established accounting system and can keep accurate records of their accounting to be used for tax purposes could be declared General Taxpayer.

Requirements Information

  • The name and # of ID cards, passports,, or other acceptable ID document from the institution, its legal representative or the owner
  • The address of the business or residence
  • The kind of registration
  • The accounting system
  • The type of production and the business operation
  • The production scope and the scope of operation
  • The sum in capital (fund) and investment
  • The production term and operation
  • The name and number of the chief financial officer.
  • Other information as specified in the State Administration of Taxation

Documentation is needed

  • Value Tax (VAT) is a tax that is imposed on the sale of products or services. It is included in the cost of the majority of items and services are used every day.
  • VAT is applicable to all businesses and individuals involved in the sale of goods, providing repair, processing and replacement of services, as well as the importation of products to China. The general VAT rates are 17%. However, essential products will be charged at 13 percent. VAT to be refunded or payable is based on the output VAT (for sales) plus input VAT (for purchases). In general, there is no tax due on exports. VAT is the main source of tax revenue to the Chinese government. Therefore, they enforce a strict system of rules and system to combat tax avoidance.

Information that can be useful

VAT Taxable Items

  • Exportation of products (except otherwise triggered from the State);
  • Agriculture, forestry, the products of aquaculture, animal husbandry;
  • Food-grade vegetable and grain replicas;
  • Heating, tap water cooling supply gas, hot water charcoal/charcoal, natural gas product to be used in household usage;
  • Magazines, books, and newspapers (excluding the magazines and newspapers distributed by the postal department)
  • Chemical fertilizers, food additives and agricultural chemicals, as well as machines for agriculture and plastic conversion film to be used for farming;
  • Selected metal mineral products, selected non-metal mineral products, coal;
  • Mine salt, crude oil and other products other than those that are listed above
  • Taxable services.

Other uses for the document/certificate

  • Tax on VAT is levied that applies to consumption, so anyone who purchases products and services is charged VAT. It is included in the price of many items that are commonly used like clothing and gasoline therefore, you aren’t aware of how much VAT you have to pay. However, if you are purchasing items like computers, electricity or professional services, you’ll find how much VAT you are paying as well as the amount that you will be assessed on your bill.
  • The tax law stipulates that making local sales on China mainland China without VAT invoices is illegal. Buyer and seller could be subject to prosecution or penalties.

External Links


The primary tenets that are currently in the VAT regime are: The taxpayer within China. People’s Republic of China refers to the import or sale of goods, as well as the supply of processing, repairs , and replacement services for individuals and groups classified into small-scale and general tax payers, which are divided into two types as per the overall taxpayer’s output tax deduction input tax. Using the calculated and tax liability paid approach Small-scale taxpayers use a simplified approach to calculation of tax due. VAT is charged at one-third of the rate, which is with a lower tax of 13 percent, except specified in the State Council of zero-rated exports of commercial enterprises and goods are small-scale taxpayers with a tax amount of 4.4% and the other small-scale taxpayers are subject to a tax rates of 6% however, international cooperative petroleum (gas) field as well as CNOOC self-oilfield offshore exploration of gas and oil by China tax of five percent of the levy. The VAT household sector generally set up their own tax-compliant bodies. authority to make tax declarations. with no fixed sales to tax authorities for tax declaration, as well as imports of goods made by the importer or agent, to submit tax and report it and tax to customs offices.




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