Country China
Currency CNY
EU Member State No
Standard VAT/GST rate 16%
Reduced VAT/GST rate 10% / 6% / 3% / 2%
VAT registration limit for established businesses Yes
VAT registration limit for non-established businesses No, generally only organisations legally established within China’s territory will be required to register in competent tax authority, non-resident enterprises are not required to declare its tax status.
VAT return filing periods Monthly
Annual VAT returns N/A
Additional reporting requirements Yes
VAT recovery by non-established non-EU businesses No
Reverse Charge N/A
Fiscal representative required for non-EU businesses No
Statute of limitations For unintentional errors (e.g. calculation errors) committed by the taxpayer in its tax filing, the statute of limitation is three years and extended to five years if the amount of tax underpaid is CNY 100,000 or more. For transfer pricing adjustments, the statute of limitation is ten years. There is no statute of limitation for tax evasion, refusal to pay tax, or defrauding of tax payment.