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China
VAT in
China's VAT system requires a registered Chinese legal entity — foreign companies cannot register directly. Whether establishing a WFOE, managing Golden Tax System e-invoicing obligations, or handling monthly STA returns, GlobalTrade Business provides complete Chinese VAT compliance and entity setup support.
Monthly
FILING FREQUENCY
Quarterly available for Small-Scale Taxpayers; annual reconciliation required for all
RMB 5,000,000
REGISTRATION THRESHOLD
Annual VAT taxable sales for General Taxpayer status; Small-Scale Taxpayer for below threshold; non-residents cannot register without a Chinese legal entity
OVERVIEW
Introduction to VAT in China
China's VAT (增值税 — zēngzhíshuì) is governed by the VAT Law enacted December 2024, effective 1 January 2026, administered by the State Taxation Administration (STA / 国家税务总局). A critical distinction: foreign companies without a registered Chinese legal entity cannot register for VAT directly — a WFOE (Wholly Foreign-Owned Enterprise), JV (Joint Venture), or branch must first be established. The Golden Tax System (金税系统 Phase IV) is the mandatory national e-invoicing platform for all VAT transactions.
💡 Key facts for non-Chinese businesses
Foreign companies cannot register for VAT in China without first establishing a Chinese legal entity (WFOE, JV, or branch). Non-resident suppliers providing B2B services to Chinese clients are subject to 6% withholding VAT — the Chinese purchaser withholds and remits on behalf of the foreign supplier. GlobalTrade Business provides WFOE formation, Golden Tax System setup, and ongoing STA compliance support.
VAT REGISTRATION
VAT Registration in China
Foreign companies must establish a Chinese legal entity (WFOE, JV, or branch) before VAT registration. Upon entity formation, the business registers with the local tax bureau for VAT — assigned either General Taxpayer status (annual VAT sales ≥RMB 5 million) or Small-Scale Taxpayer status. General Taxpayers must enrol in the Golden Tax System (Phase IV) and obtain an e-fapiao licence. Total setup: approximately 60–90 days.
VAT RATES
Chinese VAT Rates
China applies four VAT rates depending on the type of goods, services, or industry sector.
When do you need to register?
You need a Chinese VAT registration (via a Chinese legal entity) if you:
Key facts for non-Chinese businesses
✓ Supply goods from a Chinese location to Chinese or overseas customers
✓ Provide services from a China-registered entity
✓ Import goods into China for domestic supply
✓ Operate a WFOE, JV, or branch engaging in revenue-generating activities
✓ Seek to recover input VAT on Chinese business expenditure
⏱ Processing Time
60–90 days
Includes WFOE/entity formation + local tax bureau VAT registration + Golden Tax System enrolment
📞 Tax Authority
STA
State Taxation Administration — local tax bureau for day-to-day compliance
VAT Number Format
USCC 18 digits
Unified Social Credit Code — e.g. 91110000100010678B (includes VAT registration)
Fiscal Rep Required
N/A — requires Chinese legal entity
Foreign companies must establish WFOE/JV — cannot appoint a fiscal rep as substitute for a legal entity
Registration process
1
Assess your China VAT strategy
We review your business model to determine the appropriate entity type (WFOE, JV, or branch), registered capital requirements, and Golden Tax System obligations.Assess your China VAT strategy
We review your business model to determine the appropriate entity type (WFOE, JV, or branch), registered capital requirements, and Golden Tax System obligations.
2
Establish Chinese legal entity (WFOE/JV)
Registration with SAMR (State Administration for Market Regulation), business licence issuance, and bank account opening. Timeline: approximately 30–60 days.
3
Register with local tax bureau + Golden Tax System
VAT registration with the local tax bureau, General Taxpayer status application, Golden Tax System (Phase IV) enrolment, and e-fapiao (electronic invoice) licence. Timeline: approximately 15–30 days.
4
Begin Golden Tax System operations
All VAT invoices must be issued through the Golden Tax System. Real-time invoice data is automatically transmitted to the STA. Monthly VAT returns filed within 15 days of month-end.
Operating a taxable business in China without a registered entity and VAT registration carries serious consequences including criminal penalties for invoice fraud (up to 10 years' imprisonment). Withholding VAT at 6% applies to non-resident service suppliers. GlobalTrade Business strongly recommends establishing proper Chinese entity structure before commencing any operations.
RETURNS & DEADLINES
Chinese VAT Returns
General Taxpayers file monthly VAT returns via the Golden Tax System, due within 15 days of month-end. Small-Scale Taxpayers file quarterly (monthly option available). Annual VAT reconciliation returns are filed year-end. The Golden Tax Phase IV AI system performs real-time monitoring and flags anomalies automatically.
⏱ Processing Time
15th of next month
Monthly VAT return deadline (General Taxpayer)
Quarterly
15th of following month after quarter-end
Small-Scale Taxpayer quarterly filing
Annual (CA12)
Within 3 months of year-end
Annual VAT reconciliation return
Frequency determination
General Taxpayers (annual VAT sales ≥RMB 5M): monthly filing — due within 15 days of month-end.
Small-Scale Taxpayers: quarterly or monthly filing.
All registered taxpayers file an annual reconciliation return within 3 months of year-end.
E-invoicing in China (Golden Tax System)
China operates the Golden Tax System (Phase IV, 2025–2026) — the mandatory national e-invoicing platform. All B2B transactions require Special VAT Invoices (增值税专用发票) issued through the system, with real-time authentication and automatic STA transmission. Invoice fraud (false invoice issuance or phantom input credits) carries criminal penalties of up to 10 years' imprisonment.
REVERSE CHARGE
Chinese Reverse Charge (Withholding VAT)
When a Chinese business purchases services from a non-resident foreign enterprise (without a China entity), the Chinese purchaser withholds 6% VAT from the invoice amount and remits it to the STA. The non-resident receives only the net amount (gross invoice less 6%) and cannot recover the withheld amount without its own Chinese VAT registration.
INTRASTS & ESL
China Reporting — No Intrastat
China is not an EU member state. There are no Intrastat or EC Sales List obligations. The STA cross-references Golden Tax System invoice data with Customs Administration (海关) records for compliance monitoring, particularly for export rebate verification.
📦 Intrastat Arrivals Threshold
Mandatory
进口报关单 via China Electronic Port
🚚 Intrastat Dispatches Threshold
N/A
Mandatory
📊 ESL Frequency
出口报关单 via China Electronic Port
Monthly / Quarterly
📅 Intrastat Deadline
15th of next month
Of the following month
How GlobalTrade Business Can Help
Your complete China VAT partner
From first registration to ongoing returns — we manage the full compliance lifecycle so you can focus on your business.
Fiscal Representation
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