When designing any tax, a relatively normal tax rate can be estimated theoretically.

For ordinary taxpayers (more traditional industries), the actual tax rate of VAT should be slightly lower than 4%. If it exceeds 5%, you should think carefully about the reasons.

If it is an enterprise with a relatively large value-added product (such as high and new technology), the actual tax rate will be very high. So now some high-tech enterprises (such as chip industry) want to turn into small-scale taxpayers, and the tax is not approved.

The value-added of commerce and trade (wholesale) is very small, and the actual tax rate should be lower than 4%. If it is retail, it is hard to say. In short, it depends on the value-added range of products.