The current value-added tax in China belongs to the proportional tax rate, which is divided into 13%, 9%, 6% and 5%, 3% according to the taxable behavior. On April 20 19, China lowered the value-added tax rate of imported goods.

Value-added tax (VAT) is a kind of turnover tax based on the value-added amount of goods (including taxable services) generated in the process of circulation. From the taxation principle, value-added tax is a kind of turnover tax levied on the added value of many links in commodity production, circulation and labor service or the added value of commodities. Extra-price tax is implemented, that is, it is borne by consumers, and tax is levied only if there is value added, and tax is not levied if there is no value added.

Income proportion of value-added tax

Value-added tax is a tax levied on the value-added realized by units and individuals who sell goods or provide processing, repair and replacement services and import goods. Value-added tax has become one of the most important taxes in China, accounting for more than 60% of all taxes in China, and it is the largest tax.

Value-added tax is collected by the State Taxation Bureau, and 50% of the tax revenue is from the central government and 50% from local governments. The value-added tax in the import link is collected by the customs, and the tax revenue is all the central fiscal revenue.