The impact of VAT on your business in China

To implement greater transparency in the system and to combat tax evasion, the Chinese government has created an invoicing mechanism capable of controlling/registering all transactions.

Currently, a company with small-scale taxpayer status can have its status changed to that of general taxpayer in only 2 to 5 working days after submission of the application.

The system of invoicing, deduction and payment of VAT operates almost automatically and is controlled by the Chinese Taxation Administration.