4 ms·

Many people know the precise rates; it is just that common people do not, which is the whole point. VAT rate is public and I think uniform across the country. L

Many people know the precise rates; it is just that common people do not, which is the whole point. VAT rate is public and I think uniform across the country. Local governments impose various fees and they are not widely known to the public. Relevant accountants and officials know all about the rates but they are not supposed to broadcast it. I saw a clip of Chinese news broadcast giving shocking rates on Youtube, like a quarter to a third, but unfortunately I cannot find it now. There is little public information about effective sales tax rate. However, people do realize it. High taxes is one reason Chinese tourists buy a lot when overseas; they could see the price difference.

davidgay 6y ago
> I saw a clip of Chinese news broadcast giving shocking rates on Youtube, like a quarter to a third, 20-25% VAT is pretty common in Europe, so while that's high I wouldn't go so far as shocking.
- deleted 6y ago
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- east2west 6y ago
  Sorry, I wasn't very clear. I meant as the rate of final price. It has been a while so it is a little fuzzy, but I recall the broadcaster said up to 50% of pre-tax price. The official VAT rate is like 17% now, I think (just googled it). So it is other fees imposed by local governments that are onerous.
  - astkaasa 6y ago
    Actually it's 13% now, adjusted from 16% which is previously 17%. And it's the basic rate which means it's the highest level rate and there're several levels smaller than 13%. Seems that you have leaved China for at least 10 years.
powerapple 6y ago
There are high taxes for luxury products, a sports car can have import tax of 100%. Tax is complicated, there is VAT 17%, import tax varies depending on goods. I believe where you are at will have variable import tax on goods as well, you just never need to learn. If Chinese tourists don't know about the high import tax, why would they buy them overseas. It would be a common knowledge to be honest.

davidgay 6y ago

> I saw a clip of Chinese news broadcast giving shocking rates on Youtube, like a quarter to a third, 20-25% VAT is pretty common in Europe, so while that's high I wouldn't go so far as shocking.

deleted 6y ago
[deleted]
east2west 6y ago
Sorry, I wasn't very clear. I meant as the rate of final price. It has been a while so it is a little fuzzy, but I recall the broadcaster said up to 50% of pre-tax price. The official VAT rate is like 17% now, I think (just googled it). So it is other fees imposed by local governments that are onerous.
- astkaasa 6y ago
  Actually it's 13% now, adjusted from 16% which is previously 17%. And it's the basic rate which means it's the highest level rate and there're several levels smaller than 13%. Seems that you have leaved China for at least 10 years.

powerapple 6y ago

There are high taxes for luxury products, a sports car can have import tax of 100%. Tax is complicated, there is VAT 17%, import tax varies depending on goods. I believe where you are at will have variable import tax on goods as well, you just never need to learn. If Chinese tourists don't know about the high import tax, why would they buy them overseas. It would be a common knowledge to be honest.