China - Register for Value Added Tax (VAT)

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Procedure

Enterprises, the branches and the sites engaged in production or business operations established by enterprises in other places, industrial and commercial households and institutions engaged in production or business operations (hereinafter all referred to as taxpayers engaged in production or business operations) shall, within 30 days from the date the business license is obtained, apply to the tax authorities for tax registration by presenting the relevant documents. The tax authorities shall, within 30 days from the date the application is received, issue the tax registration certificate upon examination and verification of the documents.

The administrative departments for industry and commerce shall keep the tax authorities regularly informed of their handling of registration and issuing of business licenses upon examination.

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Required Documents

• An industrial and commercial business license or other similar permit of business operation
• A contract, agreement and articles of association
• The unified organizational code
• The ID card, passport or other valid ID certificate of the legal representative, or responsible member of owner
• Other documents and information demanded by the tax authorities of a province, autonomous region or municipality directly under the State Council

Office Locations & Contacts

State Administration of Taxation
Address: Yangfangdian Road, Haidian District, on the 5th
Zip: 100038
Tel: 010-63417114
Website: http://www.chinatax.gov.cn

State Administration for Industry and Commerce People's Republic of China
Address: 8 Sanlihe Donglu, Xichengqu, Beijing, 100820, P. R. China
Phone: +86-10-68010463/68013447
Facsimile: +86-10-68010463/68013447
Email: [email protected]
Contact
Address

Eligibility

According to The Provisional Regulation of P.R.C on VAT, Value-added tax should be paid by enterprises or individuals who sell merchandise, provide processing, repairing, or assembling service, or import goods within the territory of the People's Republic of China on the added value derived from their production, selling merchandise, providing industrial repairing or assembling service.

Fees

Explain the fees structure which is required for obtaining the certificate/document.

Validity

Explain the time until which the certificate/document is valid.
e.g. Birth Certificate Valid Forever

Documents to Use

Please attach documents that can be used by people. e.g. links

Sample Documents

Please attach sample completed documents that would help other people.

Processing Time

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Related Videos

Videos explaining the procedure or to fill the applications. 
Attach videos using the following tag <&video type="website">video ID|width|height<&/video&> from external websites.
Please remove the "&" inside the tags during implementation.
Website = allocine, blip, dailymotion, facebook, gametrailers, googlevideo, html5, metacafe, myspace, revver, 
sevenload, viddler, vimeo, youku, youtube
width = 560, height = 340, Video ID = Can be obtained from the URL of webpage where the video is displayed.
e.g In the following url "http://www.youtube.com/watch?v=Y0US7oR_t3M" Video ID is "Y0US7oR_t3M". 
	

Instructions

There are two kinds of VAT taxpayer in China by the criterion of turnover of sale goods & services and condition of accounting system. One is normal taxpayer, the other is small taxpayer. The standard of decision of Small Taxpayer is;

• where the taxpayer is engaged in the production of goods or in the provision of taxable services as his sole or principal business and his annual turnover is less than RMB 1,000,000;
• or where the taxpayer is engaged in the wholesale or retail of goods and his annual turnover is less than RMB 1,800,000.

However, A Small taxpayer who maintains a sound accounting system and is able to provide accurate accounting records for taxation purposes may be registered as a General Taxpayer.

Required Information

• The name and the number of the ID card, passport or other valid ID document of the institution, legal representative or owner
• The residence or business address
• The type of registration
• The accounting system
• The form of production and business operation
• The scope of production and operation
• The total amount of capital (fund), investment
• The term of production and operation
• The name and telephone number of the financial chief
• Other information specified by the State Administration of Taxation

Need for the Document

Value Added Tax (VAT) is a tax charged on the sale of goods or services and is included in the price of most products and services that we use every day.

VAT applies to all enterprises and individuals engaged in sales of goods, provision of processing, repairs and replacement services, and the importation of goods into China. General VAT rate is 17%, but necessities goods are taxed at 13%. VAT payable or refundable is based on output VAT (for Sales) minus input VAT (for Purchases). Generally, there is no VAT payable for export. VAT is the major source of tax revenue to Chinese government, they therefore impose a very rigid rulings and system to tackle tax avoidance.

Information which might help

VAT Taxable Items;

• Exportation of goods (except otherwise stimulated by the state);
• Agriculture, forestry, products of animal husbandry, aquatic products;
• Edible vegetable and grain duplicates;
• Tap water, heating, cooling, hot air supplying, hot water, gas, liquefied petroleum gas, natural gas, coal/charcoal products for household use;
• Book, newspapers, magazines (excluding the newspapers and magazines distributed by the post department)
• Feeds, chemical fertilizers, agricultural chemicals, agricultural machinery and plastic converting film for farming;
• Selected metal mineral products, selected non-metal mineral products, coal;
• Crude oil, mine salt and goods other than those listed above;
• Taxable services.

Other uses of the Document/Certificate

VAT is a tax on consumer spending so everyone who pays for goods and services pays VAT. It is built into the cost of many commonly consumed items such as clothing and petrol, so you dont see what percentage of VAT you are paying. However, when you are buying items such as computers, electricity and professional services, you will see the amount of VAT and the rate at which you are being charged on your bill.

The tax law states doing local sales in mainland China without VAT invoice is not legal. Both seller and buyer may be liable to prosecution and penalty.

External Links

State Administration for Industry and Commerce People's Republic of China

State Administration of Taxation of the People's Republic of China

Ministry of Commerce, the People's Republic of China

Tax Law

State Administration of Taxation

Others

The main contents of the current VAT system: the taxpayer within the People's Republic of China refers to the sale or import of goods and the provision of processing, repairs and replacement services units and individuals, divided into general taxpayers and small-scale taxpayers into two categories, according to the general taxpayer output tax deductible input tax is calculated and paid tax liability approach, small-scale taxpayers will pay a simplified method for calculating the tax payable. VAT at the standard rate of 17%, a low tax rate of 13%, unless otherwise provided by the State Council of zero-rated exports of goods and commercial enterprises are small-scale taxpayers applicable tax rate of 4%, and other small-scale taxpayers apply 6% levy rate, but foreign cooperative oil (gas) fields and CNOOC self oilfield offshore oil and gas exploration by China charge of 5% of the levy. VAT household sector in principle fixed their bodies competent tax authorities to declare taxes, without a fixed sales to the tax authorities to declare taxes, imports of goods by the importer or his agent to report and pay tax to the customs office.