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China VAT Rates Reference Table (13%, 9%, 6%, 3%, 0%)

China moved to a three-tier VAT rate structure of 13%, 9% and 6% after the 2019 reforms, with 0% for qualifying exports and a simplified levy for small-scale taxpayers. This table lets you check which rate normally applies to a category and what that means for ERP tax code setup.

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Category	Rate	Typical scope	ERP setup note
Sale or import of goods (general)	13%	Most manufactured goods, machinery, electronics, raw materials	Default output and input tax code for manufacturers
Processing, repair and replacement services	13%	Contract processing, equipment repair	Services taxed at the goods rate, keep a separate tax code
Leasing of tangible movable property	13%	Equipment and vehicle rental	Lease fees carry the goods rate, not the services rate
Transportation services	9%	Road, rail, air and sea freight, pipeline	Freight invoices often feed input VAT at 9%
Postal services	9%	Postal and courier basic services	Check the fapiao line item rate
Basic telecommunications	9%	Voice and basic data lines	Value-added telecom is 6%, do not mix them
Construction services	9%	Building, installation, decoration	Plant fit-out and installation contracts
Sale and leasing of real estate	9%	Factory buildings, offices	Simplified methods may apply to old property, confirm with a tax adviser
Agricultural products, grain, edible oil	9%	Primary agricultural products, tap water, heating, books, fertilizer, feed	Agricultural purchases have special deemed input rules
Modern services	6%	R&D, IT services, design, consulting, logistics support, leasing of intangible items	Common for software and ERP consulting fees
Value-added telecommunications	6%	Internet access value-added, SMS, data processing	Distinct tax code from basic telecom
Financial services	6%	Loan interest, direct charges, financial products	Loan interest input VAT is generally not creditable
Life services	6%	Catering, lodging, culture and sports, education	Staff meals and hotels, input credit depends on use
Transfer of intangible assets	6%	Patents, trademarks, know-how	Land use right transfer follows the 9% real estate rate
Small-scale taxpayer simplified levy	3% (policy reduced rates have applied)	Small-scale taxpayers using the levy rate method	Check the current reduced rate before setting master data
Export of goods	0% (exempt, credit and refund eligibility varies)	Customs declared exports	Refund rate varies by HS code, store it on the item or HS master
International transport and cross-border services	0%	International freight, qualifying cross-border services	Needs supporting documents for zero rating
General taxpayer status	n/a	Can deduct input VAT, files monthly or quarterly	Enable input VAT credit and certification workflow
Small-scale taxpayer status	n/a	Annual sales threshold of 5 million CNY, no standard input credit	Turn off input VAT accounting, use the levy rate

General guidance only. China VAT policy is adjusted regularly through MOF and STA announcements, including temporary reduced rates. Confirm with a tax adviser and the current STA rules before changing tax master data.

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How to use the table

Type a keyword such as freight, software or lease into the search box to filter the rows. Each row shows the usual rate, the scope in plain language and a short note on how to treat the category in an ERP tax code or tax master. The last two rows describe taxpayer status because the status decides whether input VAT can be credited at all. Use the export buttons to put the filtered result into Excel for your tax code mapping workbook or into a PDF for the finance team to review.

The three tiers and how they map to ERP tax codes

Most manufacturers need a small set of codes: 13% for goods and processing, 9% for freight and construction, 6% for services and a 0% export code. Kingdee, Yonyou, SAP and Oracle all let you attach a tax code to the purchase and sales document line, so the rate lives on the line rather than the header. Keep separate codes for input and output, because the general ledger accounts for input VAT and output VAT differ under Chinese accounting standards.

13%: goods, processing, repair, tangible property leasing
9%: transport, construction, real estate, agricultural basics
6%: modern services, financial, life services, intangibles
0%: exports and qualifying international services

Reading results and common mistakes

The usual error is applying the services rate to leasing or repair. Equipment rental and repair are taxed at 13% even though they sound like services. Another frequent issue is forgetting that a 0% export line is not the same as VAT exempt, because zero rating keeps the input credit and may qualify for a refund calculated by the HS code refund rate. A third mistake is treating small-scale taxpayer suppliers like general taxpayers, then expecting to claim input VAT that their ordinary fapiao does not provide.

Keeping the table current

Policy changes arrive as announcements from the Ministry of Finance and the State Taxation Administration, often effective on a stated date. Treat the table as a starting reference, then verify against the latest announcement before a rate change goes into your ERP. Put an effective-from date on every tax code so documents already posted keep the rate that was valid at the time.

Frequently Asked Questions

What are the VAT rates in China now?

The standard structure is 13% for goods and goods-like services, 9% for transport, construction, real estate and some basics, and 6% for modern services. Exports are generally zero rated, and small-scale taxpayers use a simplified levy. Temporary reductions are common, so confirm the current rate.

Is repair work taxed at 13% or 6% in China?

Processing, repair and replacement services are taxed at the goods rate of 13%, not the 6% modern services rate. The same goes for leasing of tangible movable property such as equipment. This catches many foreign finance teams who assume all services are 6%.

What is the difference between zero rated and VAT exempt in China?

Zero rated exports keep the right to deduct input VAT and can qualify for a refund or exemption and credit treatment depending on the exporter. Exempt supplies generally do not allow input credit. The two need different tax codes in the ERP.

Do small-scale taxpayers issue special VAT fapiao?

Small-scale taxpayers can generally issue ordinary fapiao and, in many cases, request special VAT fapiao from the tax bureau. Their customers usually get limited input credit. Always check the supplier status before assuming a credit.

If your China entity runs on Kingdee, Yonyou or SAP and you want tax code checks against live ERP data, Netray can review your setup and show where the rates on documents disagree with master data.

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