Back to Basics: VAT in China

For today’s business post we are giving you an exclusive insight into the basics of dealing with VAT in China. 

BLG10 Chinese YUAN2

Understanding VAT can be a tricky business even in your own country, so you can imagine trying to grasp one of the most complex VAT systems in the world causes even the most experienced entrepreneur to cower at the task.

We have turned to our good friend tradegood.com to share their knowledge of VAT. Check the link below!

http://www.tradegood.com/en/insights/viewpoints/sourcing-tips/vat-in-china-some-basics.html

Here are some key words translated into Chinese:

English Chinese Pinyin Pronunciation
VAT 增值税 Zēngzhí shuì Zung zher shway
Goods 商品 Shāngpǐn Shang pin
Rates 利率 Jìlǜ Gee lu
Import 进口 Jìnkǒu Gin ko
Export 出口 Chūkǒu Chu ko
Trade 贸易 Màoyì Mao yee
Tax Shuì Shway
Credit 信用 Xìnyòng Xhin yong
Exchange rate 汇率 Huìlǜ Hway lu

 

We hope this helps break down the basic essentials of VAT in China. If you are still scratching your head and eager to read a more comprehensive guide than have a read of the article ‘A look inside China’s VAT system’:

http://www.ey.com/Publication/vwLUAssets/China_VAT_system_en/$FILE/China_VAT_system_en.pdf

 

 

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