Sales Tax VAT China
About Sales Tax VAT China
China introduced VAT in 1984, initially applying it only to certain industrial goods. VAT was gradually expanded to cover more sectors. In 2016, China replaced its business tax with VAT, making VAT the dominant indirect tax. The standard VAT rate in China is 13 percent, with reduced rates of 9 percent and 6 percent for certain goods and services. China has the largest VAT revenue of any country. VAT is administered by the State Taxation Administration. China also has an individual income tax that was significantly reformed in 2019 to include comprehensive income taxation. The Chinese tax system has become more sophisticated, with electronic filing and digital invoicing widely adopted.
Related Entries
Stamp Act 1765
The Stamp Act of 1765 required American colonists to pay a tax on every piece of printed paper they ...
Magna Carta Taxation
Magna Carta, signed in 1215, limited the power of King John to impose taxes without consent. Clause ...
US Income Tax 1861
The first US federal income tax was enacted in 1861 to fund the Civil War. The Revenue Act of 1861 i...
16th Amendment
The 16th Amendment to the US Constitution, ratified in 1913, gave Congress the power to lay and coll...