Supply Chain & InventoryFree worksheetPDF, Excel, Word exportManufacturingChina

China Supplier Quote Comparison Worksheet (VAT Adjusted)

Quotes from Chinese suppliers arrive in different formats: some include 13 percent VAT, some do not, and Incoterms, tooling and MOQ differ. This worksheet normalizes them so a buyer can compare real cost.

Download:
SupplierCityQuoted termsQuoted unit price (incl. VAT)VAT rate (%)Unit price ex-VATMOQMOQ order value ex-VATTooling chargeFirst order costLead time (days)
CNY 13
CNY 25,398
CNY 43,398
CNY 12
CNY 61,504
CNY 73,504
CNY 13
CNY 13,451
CNY 35,451
CNY 12
CNY 37,282
CNY 46,282
CNY 12
CNY 31,195
CNY 46,195
Sum of first order cost
CNY 244,830
Lowest ex-VAT unit price
CNY 12
Shortest lead time
28
Average ex-VAT unit price
CNY 13
Spread between highest and lowest
9.4%

Compare quotes on the same Incoterm before ranking. Mainland general taxpayers usually quote at 13 percent VAT for goods, while small-scale taxpayers may quote around 3 percent, so a lower sticker price can hide a lack of deductible input VAT for the buyer. Export buyers should confirm whether the quote includes VAT and whether the exporter can claim the refund.

Supplier comparison from your ERP

Optional: a read-only sourcing report built from your approved vendor and purchase history data.

Optional. The tool and every export work without this. No spam.

How to use it

Add one row per supplier. Enter the quoted unit price, the VAT rate included in that price, the MOQ, any tooling charge and the lead time. The sheet removes VAT to show an ex-VAT unit price, then calculates the MOQ order value and the first order cost, which is price times MOQ plus tooling. If a quote is already ex-VAT, set the VAT rate to zero. Add rows with the button, delete those you do not need, and export the final table to Excel for your RFQ file.

Why VAT-adjusted comparison matters

In China, general VAT taxpayers charge 13 percent on most manufactured goods, while small-scale taxpayers use a simplified rate that has often been 3 percent. Quoted prices may or may not include these. Comparing a VAT-inclusive quote to an ex-VAT quote overstates the cost gap by more than 10 percent. For export business, domestic VAT is generally neutralized by the refund or exemption system, so the economic base is the ex-VAT price.

  • Ex-VAT price = quoted price / (1 + VAT rate)
  • First order cost = ex-VAT price x MOQ + tooling
  • Always compare on one Incoterm
  • Ask for the special fapiao if input VAT matters

Reading the result and common mistakes

The lowest unit price is rarely the cheapest first order, because tooling and MOQ push cost up. A supplier with a slightly higher price and low MOQ can win for pilot runs. Mistakes include comparing EXW to FOB, forgetting freight and duty after the comparison, ignoring payment terms, treating a tooling charge as free when the supplier keeps the mold, and not recording the quote date. Use the lead time column to flag suppliers that cannot meet the schedule.

Frequently Asked Questions

What VAT rate should I enter?

Use the rate shown on the quote or the supplier's taxpayer status. Many goods are at 13 percent for general taxpayers, and small-scale taxpayers may charge a reduced simplified rate. Ask the supplier to state it.

Why does the sheet include tooling in the first order?

Tooling is often paid upfront and affects cash and break-even volume. Including it in the first order cost prevents a cheap unit price from hiding a large tooling charge.

Can I add extra columns?

The worksheet has fixed columns, but you can export to Excel and add freight, duty, payment terms and quality scores. Keep the VAT-adjusted base so later changes remain comparable.

Should I compare different Incoterms?

Only after adding the cost to bring them to the same point. EXW excludes export clearance and freight, while DDP includes almost everything. Convert before ranking.

If quotes and approved vendors live in your ERP, Netray can help turn this comparison into a repeatable sourcing report. We can build it privately on your own side.