Is to pay value-added tax, the tax rate is 2%. Value-added tax is a turnover tax based on the value-added amount of goods (including taxable services) generated in the circulation process. From the tax principle, value-added tax is a turnover tax levied on the added value of many links such as commodity production, circulation and labor services or the added value of commodities.

value-added tax

It 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 levied by the State Taxation Bureau, and 50% of the tax revenue comes from the central government and 50% from local governments.