Table of 2019 value-added tax rates

Small-scale taxpayers and general taxpayers applicable to the simplified method for calculating the tax payable

Simplified Method for Calculating the Tax Payable

VAT Rate

Small-scale taxpayers selling goods, providing processing, repairs and replacement services, providing taxable services or dealing in intangible assets;

General taxpayers having applicable specific taxable behaviors according to regulations can choose to use the simplified method for calculating the tax payable, excluding those applicable to 5 percent tax rate

3%

Sale of immovable properties; eligible operating lease of real estate (land use rights);

transfer of land use rights before replacing the business tax with the value-added tax;

real estate development enterprises selling or leasing old self-developed real estate projects;

eligible real estate financing leasing;

labor dispatch and security protection services choosing balance tax payments;

general taxpayers providing human resources outsourcing services

5%

For individual house renting, the tax payable shall be calculated at a reduced rate of 1.5 percent

Tax Payable= Rent (include tax) ÷（1+5%）×1.5%

5% reduced to 1.5%

For taxpayers selling used properties;

small-scale taxpayers (excluding other individuals) and general taxpayers who meet the prescribed conditions selling their own used fixed assets, the tax payable shall be calculated at the rate of 2 percent based on the 3 percent rate

Tax Payable= Selling price (include tax)÷（1+3%）×2%

3% reduced to 2%

General Taxpayers

General Taxpayers

VAT Items

VAT Rates

For taxpayers selling or importing goods (except those specified in this regulation);

for taxpayers selling labor services

13%

For taxpayers selling or importing the following goods:

1) Grains and other agricultural products, edible vegetable oil, and salt;

2) Tap water, heating, air conditioning, hot gas, coal gas, liquefied petroleum gas, natural gas, dimethyl ether，methane gas, coal/charcoal products for household use;

3) Books, newspapers, magazines, video products and electronic publications;

4) Feeds, chemical fertilizers, agricultural chemicals, agricultural machinery and agricultural plastic film;

5) Other goods as stipulated by the State Council.

9%

Regulations on input VAT on purchased agricultural products

Deduction Rate

For the VAT general taxpayers purchasing agricultural products, the original 10 percent deduction rate shall be lowered to 9 percent

9%

For the VAT general taxpayers purchasing agricultural products used for production or entrusted processing of goods with a tax rate of 13 percent, the input tax shall be calculated at a deduction rate of 10 percent.

10%

Business Tax to VAT Items

VAT Rate

Transportation services

Land transport services, water transport services, air transport services (including space transportation services) and pipeline services, and non-means transport business

9%

Postal services

General postal services, special postal services, and other postal services

9%

Telecommunications services

basic telecommunications service

9%

value-added telecommunications service

6%

Construction services

Engineering services, installation services, repair services, decoration services, and other construction services

9%

Sales of real estate

Transfer the ownership of immovable properties such as buildings and structures

9%

Financial services

Loan services, direct-charging financial services, insurance services and transfer of financial instruments

6%

Modern services

Research & development and technical service

6%

Information technology service

Cultural creative service

Logistic support service

Certification and consultancy service

Radio, film and television service

Business support service

Other modern services

Tangible movable property leasing service

13%

Immovable property leasing service

9%

Life-support services

Cultural and sport service

6%

Education and medical service

Tourism and entertainment service

Catering and accommodation service

Daily services for residents

Other life services

Selling intangible assets

Transfer the right to use or ownership of technology, trademark, copyright, goodwill, natural resources and other equity intangible assets

6%

Transfer the right of land use

9%

Taxpayers

Exporting goods, services, and intangible assets

VAT Rate

For taxpayers exporting goods (except as otherwise stipulated by the State Council)

Zero tax rate

For domestic units and individuals selling abroad services and intangible assets within the scope stipulated by the State Council

Zero tax rate

For taxpayers selling goods and labor services, or providing cross-border taxable behaviors eligible for tax exemption

Tax exemption

Units and individuals in China who sell services or intangible assets with zero VAT rate may forgo the application of zero VAT rate and opt for exemption or payment of VAT in accordance with regulations. No application for zero VAT rate shall be made within 36 months once that option is exercised.