China VAT Rates 2025: Zero, 9%, 13% Explained with Full Table
If you're doing business in the People's Republic of China, understanding the **China VAT rates** (Value-Added Tax) is crucial for compliance. For the calendar year **2025**, China maintains a multi-tier VAT structure for general taxpayers, primarily revolving around the **13%, 9%, and 6%** tiers, in addition to the **zero-rated (0%)** category.
This comprehensive guide breaks down the current **China VAT percentage** for goods, services, and real estate, and clarifies the special reduced rates available, including the temporary rate for small-scale taxpayers.
The Three Main China VAT Rates for General Taxpayers in 2025
China's VAT system categorizes entities into two main groups: **General Taxpayers** (annual taxable sales exceeding RMB 5 million) and **Small-Scale Taxpayers** (RMB 5 million or less). General Taxpayers are subject to the primary tax rates, which are:
- 13% (Standard Rate): Applied to most goods and imports, repair and replacement services, and the lease of tangible movable assets.
- 9% (Reduced Rate): Applies to a range of essential goods and services, including transportation, postal services, basic telecommunications, construction services, real estate, and certain agricultural products.
- 6% (Reduced Rate): Primarily applied to "modern services" and intangible assets, such as financial services, insurance, technology transfer, R&D, IT services, and consulting services.
For a detailed breakdown of which rate applies to which category, refer to the full table below.
Zero-Rated (0%) and Special Reduced VAT
While the keyword-focused rates are 13% and 9%, it is important to understand the **zero VAT** category, which is key for international trade, and the simplified reduced rate for smaller entities.
Zero-Rated (0%) VAT Rate
The **0%** or **zero-rated** VAT is typically applied to **exports** of goods, as well as certain cross-border services that are fully consumed overseas. Taxpayers can claim a refund on the input VAT related to these zero-rated transactions, which is a major benefit for export-oriented companies.
Simplified Rate for Small-Scale Taxpayers
The standard simplified levy rate for small-scale taxpayers is 3%. However, as a temporary measure extended through December 31, 2027, the levy rate is reduced to a favorable **1%** for certain sales by these taxpayers. This is an important relief for small businesses operating in China in 2025.
Full Table of China VAT Rates 2025
This table summarizes the core **China VAT percentage** structure for General Taxpayers in 2025:
| VAT Rate | Category | Examples of Goods/Services |
|---|---|---|
| 13% | Standard Rate | Most Goods and Imports, Repair Services, Tangible Movable Property Leasing. |
| 9% | Reduced Rate | Transportation, Postal Services, Basic Telecom, Construction, Real Estate (Sales & Leasing), Certain Agricultural Goods, Media/Publications. |
| 6% | Reduced Rate | Financial Services, Insurance, R&D, IT Services, Technical Consulting, Intangible Assets (e.g., Trademarks, Copyrights). |
| 0% | Zero-Rated | Export of Goods, Qualifying Cross-Border Services. |
| 1% | Special Simplified Levy Rate (Temporary) | Applicable to certain sales by Small-Scale Taxpayers (through Dec 31, 2027). |
Navigating China’s VAT System for 2025 and Beyond
The **China VAT percentage** structure remains consistent in 2025, providing a clear framework for General and Small-Scale Taxpayers. However, it is noteworthy that a new consolidated VAT Law was enacted and is scheduled to take effect on **January 1, 2026**. While this law is expected to retain the existing 13%, 9%, and 6% rates, businesses should consult with a qualified tax professional to ensure full compliance and understand any administrative changes under the new legislation.
Disclaimer: This article provides general informational content regarding **China VAT rates** for SEO purposes only. It is not tax advice. Please consult with a certified tax advisor or legal professional for advice specific to your business operations in China.
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