Yes According to the inquiry in official website, State Taxation Administration of The People's Republic of China, People's Republic of China (PRC), whether you are engaged in a tape factory or any business activities in your own yard, you must pay taxes according to law. This is stipulated by national laws and the obligation of every citizen and enterprise. Taxpayers selling goods or taxable services shall be calculated according to the sales amount and the applicable tax rate, and declare and pay value-added tax to the tax authorities.