CONSUMPTION TAX ON IMPORTED GOODS

 Any goods imported in China are submitted to a VAT of 13% or 17%.

The tax of 13% concerns only a specific category of good from the agriculture sector, and on a certain kind of utilitarian objects. For other goods, it is a tax of 17 % which will be applied. The input VAT (sale x VAT rate) is the amount of the VAT paid when a taxable product or a service is bought and, could be deductible a TVA downstream. Furthermore, it is the VAT amount of taxable goods or services submitted to the buyer by the seller. Chinese consumption tax (CT) is Applied on companies and organizations which produce and import: Taxable products, taxable products under the figure of consignment or taxable sales products. All products regarded as toxic to human health like: The tobacco, Alcohol, luxury goods (jewels, cosmetics) and top range products (cars and motorbikes) are taxable imported products to the consumption tax in China.

• For imported goods, consumption tax can depend on the type of product.
• Tax calculation can be done either based on « ad valorem » or on quantity.