Legal basis: Provisional Regulations of People's Republic of China (PRC) on Value-added Tax.
Article 1 Units and individuals that sell goods or provide processing, repair and replacement services and import goods within the territory of People's Republic of China (PRC) are taxpayers of value-added tax and shall pay value-added tax in accordance with these regulations.
Article 2 VAT rate:
(1) Taxpayers selling or importing goods, except as provided in Items (2) and (3) of this Article, shall pay a tax rate of 17%.
(2) The taxpayer sells or imports the following goods at the tax rate of 13%: 1. Grain, edible vegetable oil, tap water, heating, air conditioning, hot water, gas, liquefied petroleum gas, natural gas, biogas, coal products for residents, books, newspapers, magazines, feed, chemical fertilizer, pesticides, agricultural machinery and agricultural film.
(3) Taxpayers export goods with zero tax rate, unless otherwise stipulated by the State Council.
(4) Taxpayers provide processing, repair and replacement services (hereinafter referred to as taxable services), and the tax rate is 17%.