Key practical points:
• VAT is charged on the sale of most goods and services, with the rate varying by type of activity (check the current rate).
• There is a difference between a general taxpayer (who can deduct input VAT) and a small-scale taxpayer (a simpler, lower rate).
• The official invoice, the fapiao, is the recognised tax document; without it a company cannot deduct or prove its expenses.
• Always ask suppliers for a genuine fapiao on your purchases, and issue a correct fapiao to your customers.
• Exports may qualify for a VAT refund or exemption, subject to specific conditions and paperwork.
• Fake invoices or buying bogus fapiao is a serious violation carrying penalties.
💰 Tax
Value-Added Tax (VAT) Rules · Yalla China
增值税 / Value-Added Tax (VAT) rules
📝 Overview
VAT is charged on sales of goods and services in China. There is a difference between general and small-scale taxpayers, the fapiao (official invoice) system matters a lot, and exports can qualify for a VAT refund. For anyone selling or exporting.
This is general information only, not legal advice. For your specific case, consult a licensed lawyer.
📜 The law text / key provisions
💬 Practical reading
💬 This is a general reading/opinion for orientation — not the official legal text nor legal advice.
VAT and the fapiao system are at the heart of the day-to-day tax life of any business in China. A fapiao is not just a receipt; it is the document that determines your taxes and your ability to deduct, so taking the request and issuance of fapiao seriously protects you financially and legally. If you export, a VAT refund can save you significant amounts, but it needs careful documentation. Rates and procedures change, so check the current rate and work with a trusted Chinese accountant. This is general orientation, not formal legal advice.
📎 Official source
chinatax.gov.cn
🕒 Updated: 16 March 2026