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Taxation Services

VAT & Customs Duty Clearance

China Value Added Tax (VAT) on export goods may be refundable when VAT is incurred on materials purchased domestically. The refund rates range from 0% to 17%. There is a prescribed formula for determining the refund value, under which many products do not obtain the full refund of input VAT credit and suffer a different degree of export VAT costs. It can be difficult for companies to navigate through the required documentation for China VAT and Customs Duty Clearance.

China VAT

The general VAT rate in China levied on the sale or import of goods and the provision of processing, repair and installation services is 17%. A lower rate of 13% applies to goods such as books, newspapers, magazines, cereals, edible vegetable oils, tap water, heaters, coal products for residential use and other goods as prescribed by the State Council.

In the case of goods sold by certain small-scale taxpayers, a special VAT rate of 3% is applied.

The applicable service VAT rates are as follows:

  • Intangible Movable Property Leasing Services  =17%
    •    Transportation Services =11%
    •    Postal Services =11%
    •    Basic Telecommunications Services =11%
    •    Value-Added Telecommunications Services =6%
    •    Research, Development & Technical Services =6%
    •    Information Technology Services =6%
    •    Cultural & Creative Services =6%
    •    Logistics Auxiliary Services =6%
    •    Certification & Consulting Services =6%
    •    Broadcasting, Cinematic & Television Services =6%

Customs Duty Clearance

Before completing the delivery of exported goods, all the required documentations for the local customs offices in China are required and sometimes related certifications for the products are also necessary. Not all export goods need documentation, however, some require documents such as the CCC, CEL, CFDA, CRCC and HAF 604. With our years of experience, LehmanBrown can assist you through all the steps and documentation of customs duty clearance in China.

To make an enquiry, please contact us at enquiries@lehmanbrown.com. For information about VAT & Customs Duty Clearance Services that LehmanBrown can offer, please see the relevant webpages.