China VAT Guide

What is the tax called?

Value-Added Tax (VAT)

What is the tax authority?

Entities and individuals (including individual industrial and commercial households) that sell goods, services, intangible assets, or immovables (hereinafter referred to as “engaging in any taxable transactions”), or import goods within the territory of the People’s Republic of China (hereinafter referred to as “inside China”) are taxpayers of VAT.

What is it due on?

Under the Value-Added Tax (VAT) Law of China, VAT is due on the following taxable transactions:

1. Sale of Goods: VAT is levied on the sale of goods within China, including domestic sales and deemed sales (e.g., self-use or gift of goods).
2. Provision of Services: VAT applies to services provided within China, including processing, repair, and replacement services.
3. Import of Goods: VAT is imposed on goods imported into China, calculated based on the customs value plus applicable duties and consumption tax.
4. Sale of Intangible Assets or Immovable Property: VAT is levied on the transfer of intangible assets (e.g., patents, trademarks) and immovable property (e.g., real estate) within China.

What are the VAT rates?

According to the Value-Added Tax (VAT) Law, the VAT rates in China are structured as follows:

1. Standard Rate: 13% – Applies to the sale or import of most goods, as well as the provision of repair, replacement, and processing services.
2. Reduced Rate: 9% – Applies to specific goods and services, such as agricultural products, utilities, transportation, postal services, and certain real estate transactions.
3. Low Rate: 6% – Applies to the provision of modern services, financial services, and intangible assets.
4. Zero Rate (0%): Applies to exported goods and services, as well as certain international transportation services.
The specific rates applicable to a taxpayer depend on the nature of the taxable transaction and the category of goods or services involved.

What does a VAT number look like?

According to the Announcement of the State Taxation Administration on the Nationwide Promotion and Application of Fully Digitized Electronic Invoices (State Taxation Administration Announcement No. 11 of 2024), the structure of a digitized electronic invoice (DEI) number is as follows:

Article 4:
The invoice number of a digitized electronic invoice consists of 20 digits, where:
Digits 1-2 represent the last two digits of the Gregorian calendar year (e.g., “24” for 2024);
Digits 3-4 indicate the regional code of the provincial-level tax bureau where the invoice issuer is located;
Digit 5 denotes the issuance channel or related information (e.g., online/offline);
Digits 6-20 are sequential codes assigned in a unique order.
This numbering system ensures the uniqueness and traceability of digitized electronic invoices nationwide.

Is there a registration limit?

Under the Value-Added Tax (VAT) Law, there is no specific registration limit for VAT purposes in China. All entities and individuals engaged in taxable transactions (such as selling goods, providing services, transferring intangible assets, or importing goods) are required to register for VAT, regardless of their sales volume. However, taxpayers are classified into general taxpayers and small-scale taxpayers based on their annual taxable sales and accounting capabilities:
1. General Taxpayers:
– Typically, taxpayers with annual taxable sales exceeding RMB 5 million (or those who meet specific criteria) must register as general taxpayers.
– They are required to issue special VAT invoices, maintain proper accounting records, and claim input VAT credits.
2. Small-Scale Taxpayers:
–  Taxpayers with annual taxable sales of RMB 5 million or less may register as small-scale taxpayers.
– They are subject to a simplified VAT regime, with lower tax rates and no obligation to issue special VAT invoices or claim input

VAT credits.
Even if a taxpayer’s sales are below the threshold, they may voluntarily register as a general taxpayer if they meet the necessary conditions.

When does a non-established entity need to register?

Under the Value-Added Tax (VAT) Law, a non-established entity (i.e., an entity without a permanent establishment in China) is required to register for VAT in China if it engages in taxable transactions within the territory of the People’s Republic of China. This includes:

1. Selling goods, services, intangible assets, or immovable property to Chinese customers.
2. Importing goods into China.
The obligation to register arises when the non-established entity generates taxable revenue from these activities. Once registered, the entity must comply with Chinese VAT regulations, including filing VAT returns and paying VAT on taxable transactions.
In some cases, a non-established entity may appoint a tax agent in China to handle VAT registration and compliance on its behalf.

When is the place of supply in China?

Under the Value-Added Tax (VAT) Law of China, the place of supply determines whether a transaction is subject to Chinese VAT. The rules are as follows:
1. Goods:
– The place of supply is where the goods are located at the time of sale or importation.
– For exported goods, the place of supply is outside China, and they are generally subject to a zero VAT rate.
2. Services:
– For domestic services, the place of supply is where the services are actually performed or consumed.
– For cross-border services, the place of supply depends on the nature of the service and the location of the customer:
– If the customer is located within China, the place of supply is China, and VAT applies.
If the customer is located outside China, the place of supply is outside China, and the services may be exempt from VAT or subject to a zero VAT rate.
3. Intangible Assets and Immovable Property:
– The place of supply is where the assets or property are located.

These rules ensure that VAT is correctly applied based on the location of the transaction and the parties involved.

Any special rules?

Yes, under the Value-Added Tax (VAT) Law of China, there are several special rules that apply to specific transactions or industries. These rules are designed to address unique circumstances and ensure fair taxation. Key examples include:

1. Small-Scale Taxpayers:
– Taxpayers with annual taxable sales of RMB 5 million or less may qualify as small-scale taxpayers.
– They are subject to a simplified VAT regime with a lower effective tax rate (typically 3%) and are not required to issue special VAT invoices or claim input VAT credits.
2. Exemptions and Zero-Rating:
– Certain transactions are exempt from VAT, such as agricultural products sold by agricultural producers, financial services, and educational services.
– Zero-rated VAT applies to exported goods and services, as well as certain international transportation services.
3. Cross-Border Services:
– Specific rules apply to cross-border services, where services provided to overseas clients may be zero-rated or exempt from VAT.
4. E-Commerce:
– Special rules govern VAT collection for cross-border e-commerce transactions, including the imposition of VAT on imported goods purchased online by individual consumers.
5. Real Estate and Construction:
– Transactions involving real estate and construction services are subject to specific VAT rules, including the use of deduction methods for input VAT.
6. Input VAT Credit Restrictions:
– Certain expenses, such as those related to entertainment, hospitality, and passenger transportation, are not eligible for input VAT credit.
– These special rules ensure that VAT is applied appropriately across different sectors and transactions.

Does a non-established entity need a fiscal representative?

Under the Value-Added Tax (VAT) Law of China, a non-established entity (i.e., an entity without a permanent establishment in China) is generally not required to appoint a fiscal representative for VAT purposes. However, the entity must still comply with Chinese VAT regulations, including registering for VAT, filing returns, and paying taxes, if it engages in taxable transactions within China (e.g., selling goods, providing services, or importing goods).

In practice, many non-established entities choose to appoint a tax agent or a local representative to assist with VAT registration, compliance, and reporting, as navigating the Chinese tax system can be complex.

How often do VAT returns need to be submitted?

Under the Value-Added Tax (VAT) Law of China, the frequency of VAT return submissions depends on the type of taxpayer and the requirements of the tax authorities. The general rules are as follows:

1. General Taxpayers:
– Typically, general taxpayers are required to submit VAT returns monthly.
– The deadline for filing and payment is the 15th day of the following month.
2. Small-Scale Taxpayers:
– Small-scale taxpayers are generally required to submit VAT returns quarterly.
– The deadline for filing and payment is the 15th day following the end of the quarter.
3. Special Cases:
– For certain industries or taxpayers, the tax authorities may require more frequent submissions (e.g., every ten days or weekly) based on specific circumstances.

If the deadline falls on a public holiday, it may be extended. Taxpayers must strictly adhere to the requirements of the tax authorities to avoid late payment penalties or other penalties.

Are penalties imposed for late registration?

Under the Tax Collection and Administration Law of the People’s Republic of China, if a taxpayer fails to register for Value-Added Tax (VAT) within the required timeframe, the tax authorities may impose penalties for late registration. The specific penalties include:
1. Fines:
– According to Article 60 of the Tax Collection and Administration Law, a fine of up to RMB 2,000 may be imposed for late registration.
– If the circumstances are serious, the fine may increase to RMB 2,000 to RMB 10,000.
2. Additional Consequences:
– The taxpayer may be required to backpay VAT on taxable transactions conducted during the unregistered period.
– Interest on overdue tax payments may also be charged.

Taxpayers are advised to complete VAT registration promptly after engaging in taxable transactions to avoid penalties and ensure compliance with tax regulations.

Are penalties imposed in other circumstances?

Under the Value-Added Tax (VAT) regulations and the Tax Collection and Administration Law of the People’s Republic of China, penalties may be imposed not only for late registration but also in other circumstances. These include:
1. Late Filing or Non-Filing of VAT Returns:
– Taxpayers who fail to file VAT returns on time may be subject to a fine of RMB 2,000 or less.
– If the circumstances are serious, the fine may increase to RMB 2,000 to RMB 10,000.
2. Underpayment or Non-Payment of VAT:
– Taxpayers who underpay or fail to pay VAT may be required to pay the outstanding tax amount plus a late payment penalty (typically 0.05% of the unpaid tax per day).
– In severe cases, additional fines may be imposed.
3. Issuing False VAT Invoices:
– Issuing false or fraudulent VAT invoices is a serious offense and may result in heavy fines (up to RMB 500,000) and even criminal liability.
4. Failure to Maintain Proper Accounting Records:
– Taxpayers who fail to maintain accurate accounting records may be fined up to RMB 10,000.
5. Non-Compliance with VAT Invoicing Rules:
–  Failure to issue VAT invoices or issuing invoices in violation of regulations may result in fines and other penalties.
These penalties are designed to ensure compliance with VAT regulations and maintain the integrity of the tax system.

Can VAT incurred by non-NL businesses be recovered?

Under China’s Value-Added Tax (VAT) laws (the Interim Regulations on Value-Added Tax of the People’s Republic of China and related rules), non-Chinese businesses (non-resident enterprises) generally cannot directly recover VAT incurred in China, as VAT input tax credits are primarily available to businesses registered as general VAT taxpayers in China. Key points include:
1. General Taxpayer Eligibility
Only businesses registered in China and qualified as general VAT taxpayers can claim input tax credits (with valid VAT special invoices). Non-resident enterprises without a Chinese registration or general taxpayer status are generally ineligible for VAT recovery.
2. VAT Obligations for Non-Resident Enterprises
Non-resident enterprises providing services, selling goods, or intangible assets in China may be required to pay VAT (e.g., under the “reverse charge” mechanism for cross-border services, where the Chinese recipient withholds VAT). However, such VAT paid is not recoverable as input tax unless the enterprise establishes a local branch and registers as a general taxpayer.
3. Special Refund Cases
For certain cross-border transactions (e.g., imported goods), VAT paid at importation may be claimed as input tax by the Chinese importer (the credit belongs to the domestic importer, not the foreign supplier). Additionally, specific industries like international transportation or exhibitions may have limited refund policies under strict conditions.
Legal Basis:
• Article 1 and 4 of the Interim Regulations on VAT
• Administrative Measures for VAT General Taxpayer Registration

Can VAT be deducted?

Under the Value-Added Tax (VAT) Law of China, VAT can be deducted under specific conditions. This is known as input VAT credit, which allows taxpayers to offset the VAT they have paid on purchases (input VAT) against the VAT they charge on sales (output VAT). The key points are as follows:
1. Eligibility for Input VAT Credit:
– Input VAT credit is available to general taxpayers who hold valid VAT special invoices or other tax-compliant documents.
– The purchases must be used for taxable activities (e.g., producing or selling taxable goods or services).
2. Non-Eligible Input VAT:
– Input VAT on certain expenses, such as entertainment, hospitality, and passenger transportation, cannot be deducted.
– Input VAT on purchases used for non-taxable or exempt activities is also not eligible for credit.
3. Calculation of Deductible VAT:
– The deductible VAT amount is calculated as the output VAT (VAT charged on sales) minus the input VAT (VAT paid on purchases).
4. Special Rules for Small-Scale Taxpayers:
– Small-scale taxpayers generally cannot claim input VAT credit but are subject to a simplified VAT regime with lower effective tax rates.

This mechanism ensures that VAT is only levied on the value added at each stage of production and distribution, avoiding double taxation.

Do I need to issue an invoice?

Yes，Based on China’s current VAT laws and regulations, the requirements for issuing invoices are as follows：
1. Legal Obligation
Under Article 19 of China’s Interim VAT Regulations and Article 20 of the Invoice Management Measures: Taxable entities/individuals must issue invoices for the supply of goods, services, intangible assets, or immovable property.
– General VAT taxpayers: Must issue VAT special invoices or ordinary invoices, depending on the transaction type and buyer’s tax status.
– Small-scale taxpayers: May issue ordinary VAT invoices or request tax authorities to issue VAT special invoices on their behalf.
2. Exceptions
– Consumers (non-business entities) may receive ordinary invoices instead of VAT special invoices.
– Small-value transactions (below VAT threshold) may use simplified receipts.
– Certain tax-exempt transactions (e.g., agricultural products) require ordinary invoices but prohibit VAT special invoices.
3. Non-Compliance Penalties
Failure to issue invoices may result in fines (up to RMB 10,000) and late payment fees (Tax Collection and Administration Law, Article 64).
Recommendation: Assess obligations based on transaction nature, taxpayer status, and buyer requirements. Consult a tax professional for case-specific advice.

Other

Due to changes in tax laws and regulations, potential translation discrepancies, or interpretation differences, we cannot guarantee full alignment of the content with the tax systems of other countries (or regions). Specific tax laws, regulations, and tax filing procedures are subject to the officially released information from the respective country (or region).

中华人民共和国增值税法 / Value-added Tax Law of the People's Republic of China

《中华人民共和国增值税法》已由中华人民共和国第十四届全国人民代表大会常务委员会第十三次会议于2024年12月25日通过，现予公布，自2026年1月1日起施行。
The Value-added Tax Law of the People’s Republic of China, adopted at the 13th Session of the Standing Committee of the 14th National People’s Congress of the People’s Republic of China on December 25, 2024, is hereby promulgated, effective January 1, 2026.
第一章 总则 Chapter I General Provisions
第一条 为了健全有利于高质量发展的增值税制度，规范增值税的征收和缴纳，保护纳税人的合法权益，制定本法。
Article 1 This Law is enacted in order to improve upon the value-added tax (“VAT”) system conducive to high-quality development, regulate the collection and payment of VAT and protect the legitimate rights and interests of taxpayers.
第二条 增值税税收工作应当贯彻落实党和国家路线方针政策、决策部署，为国民经济和社会发展服务。
Article 2 For the work relating to VAT collection, it is imperative to implement the guidelines, policies, decisions and arrangements of the Party and the State, and serve the national economy and social development.
第三条 在中华人民共和国境内（以下简称境内）销售货物、服务、无形资产、不动产（以下称应税交易），以及进口货物的单位和个人（包括个体工商户），为增值税的纳税人，应当依照本法规定缴纳增值税。
销售货物、服务、无形资产、不动产，是指有偿转让货物、不动产的所有权，有偿提供服务，有偿转让无形资产的所有权或者使用权。
Article 3 Entities and individuals (including individual businesses) engaged in sale of goods, services, intangible assets and immovables (hereinafter referred to as the “taxable transactions”) and importation of goods within the territory of the People’s Republic of China (hereinafter referred to as “in China” in short) are VAT payers and shall pay VAT in accordance with this Law.
Sale of goods, services, intangible assets and immovables shall mean compensated transfer of ownership of goods and immovables, provision of services for compensation, and compensated transfer of ownership or use right of intangible assets.
第四条 在境内发生应税交易，是指下列情形：
（一）销售货物的，货物的起运地或者所在地在境内；
（二）销售或者租赁不动产、转让自然资源使用权的，不动产、自然资源所在地在境内；
（三）销售金融商品的，金融商品在境内发行，或者销售方为境内单位和个人；
（四）除本条第二项、第三项规定外，销售服务、无形资产的，服务、无形资产在境内消费，或者销售方为境内单位和个人。
Article 4 “A taxable transaction that occurs in China” refers to any of the following circumstances:
(1) For sales of goods, the place of departure or the location of the goods is in China;
(2) For sales or leases of immovables or transfers of the right to use natural resources, the location of the immovables or natural resources is in China;
(3) For sale of financial products, the financial products are issued in China, or the seller is an entity or individual in China; and
(4) Except for the provisions of Items (2) and (3) of this Article, sale of services or intangible assets, services or intangible assets are consumed in China, or the seller is an entity or individual in China.
第五条 有下列情形之一的，视同应税交易，应当依照本法规定缴纳增值税：
（一）单位和个体工商户将自产或者委托加工的货物用于集体福利或者个人消费；
（二）单位和个体工商户无偿转让货物；
（三）单位和个人无偿转让无形资产、不动产或者金融商品。
Article 5 Any of the following circumstances is deemed as a taxable transaction and is subject to VAT in accordance with this Law:
(1) use of self-produced goods or goods processed on commission by an entity or individual business for collective welfare or personal consumption;
(2) transfer of goods free of charge by an entity or individual business; or
(3) transfer of intangible assets, immovables or financial products free of charge by an entity or individual.
第六条 有下列情形之一的，不属于应税交易，不征收增值税：
（一）员工为受雇单位或者雇主提供取得工资、薪金的服务；
（二）收取行政事业性收费、政府性基金；
（三）依照法律规定被征收、征用而取得补偿；
（四）取得存款利息收入。
Article 6 Any of the following circumstances is not a taxable transaction and is not subject to VAT:
(1) provision of services by employees to their employers or organizations from which they obtain wages or salaries;
(2) collecting administrative service fees or government funds;
(3) obtaining compensation for expropriation or requisition pursuant to the provisions of this Law; or
(4) obtaining interest income on deposits.
第七条 增值税为价外税，应税交易的销售额不包括增值税税额。增值税税额，应当按照国务院的规定在交易凭证上单独列明。
Article 7 VAT is a tax excluded in price and the sales amount of a taxable transaction does not include VAT. VAT amount shall be separately listed on the transaction voucher as stipulated by the State Council.
第八条 纳税人发生应税交易，应当按照一般计税方法，通过销项税额抵扣进项税额计算应纳税额的方式，计算缴纳增值税；本法另有规定的除外。
小规模纳税人可以按照销售额和征收率计算应纳税额的简易计税方法，计算缴纳增值税。
中外合作开采海洋石油、天然气增值税的计税方法等，按照国务院的有关规定执行。
Article 8 Unless otherwise provided for in this Law, a taxpayer that makes a taxable transaction shall calculate and pay VAT by offsetting input tax against output tax according to the general tax calculation method to calculate the VAT payable.
Small-scale taxpayers may calculate and pay VAT according to the simple tax calculation method under which the tax payable is calculated according to the sales amount and the applicable rate.
The VAT calculation method for the exploitation of offshore oil and natural gas on a Sino-foreign cooperation basis shall be implemented in accordance with the relevant provisions of the State Council.
第九条 本法所称小规模纳税人，是指年应征增值税销售额未超过五百万元的纳税人。
小规模纳税人会计核算健全，能够提供准确税务资料的，可以向主管税务机关办理登记，按照本法规定的一般计税方法计算缴纳增值税。
根据国民经济和社会发展的需要，国务院可以对小规模纳税人的标准作出调整，报全国人民代表大会常务委员会备案。
Article 9 For the purpose of this Law, small-scale taxpayers refer to taxpayers whose annual sales amount subject to VAT is less than 5 million yuan.
Small-scale taxpayers which carry out proper accounting and can provide accurate tax information may complete registration formalities with the competent tax authorities and compute and pay VAT under the general tax computation method stipulated by this Law.
The State Council may, according to the needs of the national economy and social development, adjust the criteria for small-scale taxpayers and file the same with the Standing Committee of the National People’s Congress for the record.
第二章 税率 Chapter II Tax Rates
第十条 增值税税率：
（一）纳税人销售货物、加工修理修配服务、有形动产租赁服务，进口货物，除本条第二项、第四项、第五项规定外，税率为百分之十三。
（二）纳税人销售交通运输、邮政、基础电信、建筑、不动产租赁服务，销售不动产，转让土地使用权，销售或者进口下列货物，除本条第四项、第五项规定外，税率为百分之九：
1.农产品、食用植物油、食用盐；
2.自来水、暖气、冷气、热水、煤气、石油液化气、天然气、二甲醚、沼气、居民用煤炭制品；
3.图书、报纸、杂志、音像制品、电子出版物；
4.饲料、化肥、农药、农机、农膜。
（三）纳税人销售服务、无形资产，除本条第一项、第二项、第五项规定外，税率为百分之六。
（四）纳税人出口货物，税率为零；国务院另有规定的除外。
（五）境内单位和个人跨境销售国务院规定范围内的服务、无形资产，税率为零。
Article 10 VAT rates:
(1) Taxpayers that sell goods, provide processing, repair and replacement services, tangible movables leasing services or import goods and do not fall within the scope as specified in Items (2) through (5) of this Article are subject to a tax rate of 13%.
(2) Taxpayers that sell transport services, postal services, basic telecommunications, buildings, or real property leasing services, sell real property, transfer land use rights, or sell or import the goods listed below are subject to a tax rate of 9%, in addition to those specified in Items (4) and (5) of this Article:
(a) agricultural products, edible vegetable oil and edible salt;
(b) tap water, heating, air-conditioning, hot water, gas, liquefied petroleum gas, natural gas, dimethyl ether, biogas and coal products for household use;
(c) books, newspapers, magazines, audio-visual products and electronic publications; and
(d) feeds, fertilizers, pesticides, agricultural machinery and agricultural films.
(3) Taxpayers that sell services or intangible assets and do not fall within the scope as specified in Items 1, 2 and 5 of this Article are subject to a tax rate of 6%.
(4) Taxpayers who export goods are subject to a zero tax rate, unless otherwise specified by the State Council.
(5) Domestic entities and individuals that sell services or intangible assets across borders within the scope specified by the State Council are subject to a zero tax rate.
第十一条 适用简易计税方法计算缴纳增值税的征收率为百分之三。
Article 11 The levy rate of VAT to which the simple tax computation method applies is 3%.
第十二条 纳税人发生两项以上应税交易涉及不同税率、征收率的，应当分别核算适用不同税率、征收率的销售额；未分别核算的，从高适用税率。
Article 12 Where a taxpayer has two or more taxable transactions involving different tax rates and levy rates, the sales amounts to which different tax rates and levy rates are applicable shall be accounted for separately; if the said sales amounts are not accounted for separately, the higher tax rate shall apply.
第十三条 纳税人发生一项应税交易涉及两个以上税率、征收率的，按照应税交易的主要业务适用税率、征收率。
Article 13 Where a taxable transaction of a taxpayer involves two or more tax rates and levy rates, the tax rates and levy rates applicable to the principal business of the taxable transaction shall apply.
第三章 应纳税额 Chapter III Tax Amount Payable
第十四条 按照一般计税方法计算缴纳增值税的，应纳税额为当期销项税额抵扣当期进项税额后的余额。
按照简易计税方法计算缴纳增值税的，应纳税额为当期销售额乘以征收率。
进口货物，按照本法规定的组成计税价格乘以适用税率计算缴纳增值税。组成计税价格，为关税计税价格加上关税和消费税；国务院另有规定的，从其规定。
Article 14 Where VAT is computed and paid under the general tax computation method, the tax amount payable shall be the balance of the output tax for the current period after offsetting against the input tax for the current period.
Where VAT is computed and paid under the simple tax computation method, the tax amount payable shall be the sales amount for the current period multiplied by the levy rate.
For imported goods, VAT shall be computed and paid on the basis of the component taxable price as provided for in this Law, multiplied by the applicable tax rate. The component taxable price is the customs taxable price plus customs duty and consumption duty; if The State Council provides otherwise, such provisions shall prevail.
第十五条 境外单位和个人在境内发生应税交易，以购买方为扣缴义务人；按照国务院的规定委托境内代理人申报缴纳税款的除外。
扣缴义务人依照本法规定代扣代缴税款的，按照销售额乘以税率计算应扣缴税额。
Article 15 Where overseas entities and individuals conduct taxable transactions in China, the purchasers shall be the withholding agents, with the exception that a domestic agent shall be entrusted to file tax returns and pay taxes pursuant to the provisions of the State Council.
Where withholding agents withhold tax pursuant to the provisions of this Law, the tax amount to be withheld shall be computed by multiplying the sales amount by the tax rate.
第十六条 销项税额，是指纳税人发生应税交易，按照销售额乘以本法规定的税率计算的增值税税额。
进项税额，是指纳税人购进货物、服务、无形资产、不动产支付或者负担的增值税税额。
纳税人应当凭法律、行政法规或者国务院规定的增值税扣税凭证从销项税额中抵扣进项税额。
Article 16 Output tax shall mean the VAT amount computed by multiplying the sales amount by the tax rate stipulated herein for a taxable transaction of a taxpayer.
Input tax shall mean VAT paid or borne by a taxpayer for purchase of goods, services, intangible assets or immovables.
Taxpayers shall offset input tax against output tax on the strength of VAT deduction vouchers prescribed by laws, administrative regulations or the State Council.
第十七条 销售额，是指纳税人发生应税交易取得的与之相关的价款，包括货币和非货币形式的经济利益对应的全部价款，不包括按照一般计税方法计算的销项税额和按照简易计税方法计算的应纳税额。
Article 17 Sales amount shall mean the relevant price obtained by a taxpayer for a taxable transaction, including all price corresponding to economic benefits in monetary and non-monetary form, but shall exclude output tax computed under the general tax computation method and tax payable amount computed under the simple tax computation method.
第十八条 销售额以人民币计算。纳税人以人民币以外的货币结算销售额的，应当折合成人民币计算。
Article 18 The sales amount shall be computed in Renminbi. Where a taxpayer settles the sales amount in any currency other than Renminbi, the amount shall be converted into Renminbi for computation.
第十九条 发生本法第五条规定的视同应税交易以及销售额为非货币形式的，纳税人应当按照市场价格确定销售额。
Article 19 In the event of occurrence of a deemed taxable transaction as stipulated in Article 5 hereof and the sales amount in a non-monetary form, the taxpayer shall determine the sales amount based on the market price.
第二十条 销售额明显偏低或者偏高且无正当理由的，税务机关可以依照《中华人民共和国税收征收管理法》和有关行政法规的规定核定销售额。
Article 20 Where the sales amount is evidently low or evidently high without a proper reason, the tax authorities may determine the sales amount pursuant to the provisions of the Law of the People’s Republic of China on the Administration of Tax Collection and the relevant administrative regulations.
第二十一条 当期进项税额大于当期销项税额的部分，纳税人可以按照国务院的规定选择结转下期继续抵扣或者申请退还。
Article 21 For the portion of input tax amount for the current period which exceeds the output tax amount for the current period, the taxpayer may opt to carry forward the excess to the next period for deduction or to apply for refund pursuant to the provisions of the State Council.
第二十二条 纳税人的下列进项税额不得从其销项税额中抵扣：
（一）适用简易计税方法计税项目对应的进项税额；
（二）免征增值税项目对应的进项税额；
（三）非正常损失项目对应的进项税额；
（四）购进并用于集体福利或者个人消费的货物、服务、无形资产、不动产对应的进项税额；
（五）购进并直接用于消费的餐饮服务、居民日常服务和娱乐服务对应的进项税额；
（六）国务院规定的其他进项税额。
Article 22 The following input tax amount of a taxpayer shall not be offset against its output tax amount:
(1) input tax amount corresponding to the taxable items to which the simple tax computation method applies;
(2) input tax amount corresponding to the VAT-exempt items;
(3) input tax amount corresponding to the items of abnormal losses;
(4) input tax amount corresponding to the goods, services, intangible assets and immovables purchased for collective welfare or personal consumption;
(5) input tax amount corresponding to the catering services, daily services for residents, and entertainment services purchased for direct consumption; and
(6) other input tax amounts stipulated by the State Council.
第四章 税收优惠 Chapter IV Tax Incentives
第二十三条 小规模纳税人发生应税交易，销售额未达到起征点的，免征增值税；达到起征点的，依照本法规定全额计算缴纳增值税。
前款规定的起征点标准由国务院规定，报全国人民代表大会常务委员会备案。
Article 23 A small-scale taxpayer shall be exempted from VAT if it has a taxable transaction and the sales amount does not reach the threshold for levying VAT; if the sales amount has reached the threshold for levying, VAT shall be computed and paid fully pursuant to the provisions of this Law.
The threshold criteria stipulated in the preceding paragraph shall be stipulated by the State Council and filed with the Standing Committee of the National People’s Congress for the record.
第二十四条 下列项目免征增值税：
（一）农业生产者销售的自产农产品，农业机耕、排灌、病虫害防治、植物保护、农牧保险以及相关技术培训业务，家禽、牲畜、水生动物的配种和疾病防治；
（二）医疗机构提供的医疗服务；
（三）古旧图书，自然人销售的自己使用过的物品；
（四）直接用于科学研究、科学试验和教学的进口仪器、设备；
（五）外国政府、国际组织无偿援助的进口物资和设备；
（六）由残疾人的组织直接进口供残疾人专用的物品，残疾人个人提供的服务；
（七）托儿所、幼儿园、养老机构、残疾人服务机构提供的育养服务，婚姻介绍服务，殡葬服务；
（八）学校提供的学历教育服务，学生勤工俭学提供的服务；
（九）纪念馆、博物馆、文化馆、文物保护单位管理机构、美术馆、展览馆、书画院、图书馆举办文化活动的门票收入，宗教场所举办文化、宗教活动的门票收入。
前款规定的免税项目具体标准由国务院规定。
Article 24 The following items are exempted from VAT:
(1) sale by agricultural producers of self-produced agricultural products; agricultural mechanical ploughing, irrigation and drainage, prevention and treatment of diseases and insect pests, plant protection, agricultural and animal husbandry insurance and the related technical training services; breeding of poultry, livestock and aquatic animals as week as the prevention and treatment of diseases;
(2) medical services provided by medical institutions;
(3) antique books; and articles sold by natural persons which have been used by such persons;
(4) importation of instruments and equipment directly used in scientific research, scientific experiments and teaching;
(5) importation of materials and equipment provided by foreign governments and international organizations for gratis aid;
(6) articles directly imported by organizations for the disabled for special use by the disabled; and services provided by individuals with disability;
(7) nursing services provided by nurseries, kindergartens, elderly care agencies and service agencies for the disabled; matchmaking services; and funeral services;
(8) diploma education services provided by schools and services provided by students participating in work-study programs; and
(9) admission fees for cultural activities conducted by memorial halls, museums, cultural centers, administrations of protected cultural relics sites, art galleries, exhibition halls, academies of painting and calligraphy, and libraries; as well as admission fees for cultural and religious activities conducted at places of religious worship.
The specific criteria for tax-exempt items stipulated in the preceding paragraph shall be stipulated by the State Council.
第二十五条 根据国民经济和社会发展的需要，国务院对支持小微企业发展、扶持重点产业、鼓励创新创业就业、公益事业捐赠等情形可以制定增值税专项优惠政策，报全国人民代表大会常务委员会备案。
国务院应当对增值税优惠政策适时开展评估、调整。
Article 25 The State Council may, as needed for national economic and social development, formulate special VAT incentives for supporting development of micro and small-sized enterprises, supporting key industries, encouraging innovation and entrepreneurship and employment, making donations to public welfare undertakings etc. and other circumstances, and file the same with the Standing Committee of the National People’s Congress for the record.
The State Council shall evaluate and adjust VAT incentives in a due time.
第二十六条 纳税人兼营增值税优惠项目的，应当单独核算增值税优惠项目的销售额；未单独核算的项目，不得享受税收优惠。
Article 26 Where a taxpayer concurrently engages in VAT incentive items, the sales amount of VAT incentive items shall be accounted for separately; items not accounted for separately shall not enjoy tax incentives.
第二十七条 纳税人可以放弃增值税优惠；放弃优惠的，在三十六个月内不得享受该项税收优惠，小规模纳税人除外。
Article 27 A taxpayer may forfeit VAT incentives; a taxpayer who forfeits incentives shall not enjoy the said tax incentives within 36 months, except for small-scale taxpayers.
第五章 征收管理 Chapter V Administration of Levying
第二十八条 增值税纳税义务发生时间，按照下列规定确定：
（一）发生应税交易，纳税义务发生时间为收讫销售款项或者取得销售款项索取凭据的当日；先开具发票的，为开具发票的当日。
（二）发生视同应税交易，纳税义务发生时间为完成视同应税交易的当日。
（三）进口货物，纳税义务发生时间为货物报关进口的当日。
增值税扣缴义务发生时间为纳税人增值税纳税义务发生的当日。
Article 28 The time at which a VAT payment obligation arises shall be determined in accordance with the following provisions:
(1) Where a taxable transaction occurs, the time at which the tax payment obligation arises shall be the date on which the sales amount is received or the proof of receipt of sales amount is obtained. Where an invoice is issued in advance, the time at which the tax payment obligation arises shall be the time at which the invoice is issued.
(2) Where a deemed taxable transaction occurs, the time at which the tax payment obligation arises shall be the date on which the deemed taxable transaction is completed.
(3) For imported goods, the time at which the tax payment obligation arises shall be the date of Customs declaration for imports.
The VAT withholding obligation shall arise on the date of occurrence of the taxpayer’s VAT payment obligation.
第二十九条 增值税纳税地点，按照下列规定确定：
（一）有固定生产经营场所的纳税人，应当向其机构所在地或者居住地主管税务机关申报纳税。总机构和分支机构不在同一县（市）的，应当分别向各自所在地的主管税务机关申报纳税；经省级以上财政、税务主管部门批准，可以由总机构汇总向总机构所在地的主管税务机关申报纳税。
（二）无固定生产经营场所的纳税人，应当向其应税交易发生地主管税务机关申报纳税；未申报纳税的，由其机构所在地或者居住地主管税务机关补征税款。
（三）自然人销售或者租赁不动产，转让自然资源使用权，提供建筑服务，应当向不动产所在地、自然资源所在地、建筑服务发生地主管税务机关申报纳税。
（四）进口货物的纳税人，应当按照海关规定的地点申报纳税。
（五）扣缴义务人，应当向其机构所在地或者居住地主管税务机关申报缴纳扣缴的税款；机构所在地或者居住地在境外的，应当向应税交易发生地主管税务机关申报缴纳扣缴的税款。
Article 29 The place of VAT payment shall be determined in accordance with the following provisions:
(1) A taxpayer with fixed production and business premises shall file is tax return with and make tax payment to the competent tax authorities at its location or place of residence. Where the head office and the branch are not located in the same county (or city), they shall file their tax returns with and make tax payment to their competent tax authorities respectively. Upon approval by the competent finance and tax authorities at provincial level or above, the head office may file its tax return with and make tax payment to the competent tax authorities at the location of the head office on a consolidated basis.
(2) Taxpayers who do not have fixed production and business premises shall file their tax returns with and make tax payment to the competent tax authorities at the place where the taxable transaction occurs; where tax return is not filed, the competent tax authorities at the location or place of residence of the organization shall levy tax retrospectively.
(3) Natural persons who sell or lease immovables, transfer the right to use natural resources, or provide construction services shall file their tax returns with and make tax payment to the competent tax authorities at the location of the immovables, the natural resources or the construction services.
(4) Taxpayers importing goods shall file their tax returns and pay tax at the place stipulated by the Customs.
(5) A withholding agent shall declare the payment of tax withheld to the competent tax authorities at the location or place of residence of the withholding agent. Where the organization or residence is located overseas, the withholding agent shall declare the payment of tax withheld to the competent tax authorities at the place where the taxable transaction occurs.
第三十条 增值税的计税期间分别为十日、十五日、一个月或者一个季度。纳税人的具体计税期间，由主管税务机关根据纳税人应纳税额的大小分别核定。不经常发生应税交易的纳税人，可以按次纳税。
纳税人以一个月或者一个季度为一个计税期间的，自期满之日起十五日内申报纳税；以十日或者十五日为一个计税期间的，自次月一日起十五日内申报纳税。
扣缴义务人解缴税款的计税期间和申报纳税期限，依照前两款规定执行。
纳税人进口货物，应当按照海关规定的期限申报并缴纳税款。
Article 30 The period for computation of VAT is 10 days, 15 days, one month or one quarter. The specific tax computation period of a taxpayer shall be determined by the competent tax authorities based on the tax amount payable of the taxpayer. Taxpayers who do not frequently engage in taxable transactions may pay tax for each transaction.
Taxpayers that adopt one month or one quarter as a tax computation period shall file their tax returns and make tax payment within 15 days following the end of the period. Taxpayers that adopt 10 days or 15 days as a tax computation period shall file their tax returns and make tax payment within 10 days or 15 days from the first day of the following month.
The tax computation period and deadlines for filing tax returns for turning over tax withheld by a withholding agent shall comply with the provisions of the two preceding paragraphs.
Taxpayers importing goods shall file their tax returns and pay tax within the period stipulated by the Customs.
第三十一条 纳税人以十日或者十五日为一个计税期间的，应当自期满之日起五日内预缴税款。
法律、行政法规对纳税人预缴税款另有规定的，从其规定。
Article 31 Taxpayers that adopt 10 days or 15 days as a tax computation period shall prepay tax within five days from the date of expiry of the period.
Where laws and administrative regulations stipulate otherwise on prepayment of tax by taxpayers, such provisions shall prevail.
第三十二条 增值税由税务机关征收，进口货物的增值税由海关代征。
海关应当将代征增值税和货物出口报关的信息提供给税务机关。
个人携带或者寄递进境物品增值税的计征办法由国务院制定，报全国人民代表大会常务委员会备案。
Article 32 VAT shall be levied by the tax authorities. VAT on imported goods shall be levied by the Customs on behalf of the tax authorities.
The Customs shall provide information on VAT levied on behalf of the tax authorities and Customs declaration for exported goods to the tax authorities.
The measures for computation and levying of VAT on articles brought or mailed into the country by individuals shall be enacted by the State Council and filed with the Standing Committee of the National People’s Congress for the record.
第三十三条 纳税人出口货物或者跨境销售服务、无形资产，适用零税率的，应当向主管税务机关申报办理退（免）税。出口退（免）税的具体办法，由国务院制定。
Article 33 Taxpayers engaging in exportation of goods or cross-border sale of services or intangible assets to which the zero tax rate is applicable shall complete tax refund (exemption) formalities with the competent tax authorities. The specific measures for export tax refund (exemption) shall be enacted by the State Council.
第三十四条 纳税人应当依法开具和使用增值税发票。增值税发票包括纸质发票和电子发票。电子发票与纸质发票具有同等法律效力。
国家积极推广使用电子发票。
Article 34 Taxpayers shall issue and use VAT invoices in accordance with the law. VAT invoices shall include hard copy invoices and electronic invoices. Electronic invoices and hard copy invoices shall have equal legal validity.
The State actively promotes the use of electronic invoices.
第三十五条 税务机关与工业和信息化、公安、海关、市场监督管理、人民银行、金融监督管理等部门建立增值税涉税信息共享机制和工作配合机制。
有关部门应当依照法律、行政法规，在各自职责范围内，支持、协助税务机关开展增值税征收管理。
Article 35 The tax authorities shall establish a VAT-related information sharing mechanism and a work cooperation mechanism with the authorities in charge of industry and information technology, public security, Customs, market supervision and administration, the People’s Bank of China, financial supervision and administration etc.
The relevant authorities shall, pursuant to laws and administrative regulations and within the scope of their respective duties, support and assist the tax authorities in administration of levying and collection of VAT.
第三十六条 增值税的征收管理依照本法和《中华人民共和国税收征收管理法》的规定执行。
Article 36 The administration of VAT collection shall comply with the provisions of this Law and the Law of the People’s Republic of China on the Administration of Tax Collection.
第三十七条 纳税人、扣缴义务人、税务机关及其工作人员违反本法规定的，依照《中华人民共和国税收征收管理法》和有关法律、行政法规的规定追究法律责任。
Article 37 The legal liability of taxpayers, withholding agents, tax authorities and their staff who violate the provisions of this Law shall be pursued in accordance with the Administrative Law of the People’s Republic of China on the Administration of Tax Collection and the relevant laws and administrative regulations.
第六章 附则 Chapter VI Supplementary Provisions
第三十八条 本法自2026年1月1日起施行。《中华人民共和国增值税暂行条例》同时废止。
Article 38 This Law shall come into force as of January 1, 2026, repealing simultaneously the Provisional Regulations of the People’s Republic of China on Value Added Tax.