Legal basis: Provisional Regulations of People's Republic of China (PRC) on Value-added Tax.
Article 1 Units and individuals selling goods or processing, repair and replacement services (hereinafter referred to as services), services, intangible assets, real estate and imported goods within the territory of People's Republic of China (PRC) are VAT taxpayers and shall pay VAT in accordance with these Regulations.
Article 2 VAT rate:
(1) Unless otherwise specified in items 2, 4 and 5 of this article, the tax rate of taxpayers selling goods, services, tangible movable property leasing services or imported goods is 17%.
(2) Taxpayers sell transportation, postal services, basic telecommunications, construction and real estate leasing services, sell real estate, transfer land use rights, and sell or import the following goods at the tax rate of 1 1%:
1. Agricultural products such as grain, edible vegetable oil and edible salt;
2 residents tap water, heating, air conditioning, hot water, gas, liquefied petroleum gas, natural gas, dimethyl ether, biogas, coal products;
3 books, newspapers, magazines, audio-visual products and electronic publications;
4. Feeds, fertilizers, pesticides, agricultural machinery and plastic films;
5. Other goods specified by the State Council.
(3) Unless otherwise stipulated in Items 1, 2 and 5 of this article, the tax rate for taxpayers selling labor services and intangible assets is 6%.
(4) taxpayers export goods at zero tax rate; However, unless otherwise stipulated by the State Council.
(five) domestic units and individuals cross-border sales of services and intangible assets within the scope of the State Council, the tax rate is zero.
The adjustment of tax rate is decided by the State Council.