Tax flagship · RO vs WFOE · Entity choice · Liquidation · Trade & customs.
VAT is a transaction tax on a China taxpayer — usually the WFOE. The fapiao is the control document: no fapiao, the customer often will not pay and cannot take input credit. Small-scale vs general taxpayer changes output treatment and whether special VAT fapiao / input credit work — it is not “the 13% company.” Rate families (goods / services / reduced) are SAT versions; this page will not publish a sticker table. Export “exempt + refund” is a filing pack. Import VAT is customs. Closing VAT is the liquidation file. An RO cannot invoice its way around this.
At a glance
| Question | Short answer |
|---|---|
| RO invoice? | No. WFOE (if access is open). |
| Small vs general? | Credit and special fapiao live on general — confirm thresholds. |
| Rate card here? | No. Families only. |
| Export refund? | A pack, not week 1. |
| Close company? | Clear VAT — liquidation page. |
Scope and legal framework
VAT regulations + SAT fapiao rules. A taxable person charges VAT on taxable supplies and generally issues fapiao through the administered system. Input credit is a general-taxpayer story tied to compliant special fapiao.
Taxpayer status. Small-scale and general-taxpayer treatments differ on rate mechanism and credits. Thresholds and elections are versioned — ask the tax bureau / software, not a 2022 blog.
Export and import. Outbound goods may be exempt with a refund filing. Import VAT is assessed at customs and is not “the fapiao machine.”
Practical workflow
- Licence, tax registration, invoicing device / e-fapiao onboarding.
- Status: small-scale or general — written, not assumed.
- First special/ordinary fapiao test with a friendly customer before volume.
Common mistakes
- Promising special fapiao while still small-scale.
- Booking export refunds into the cash forecast in month one.
- Using the RO to “just invoice a little.”
Action checklist
- Entity can legally sell (not an RO).
- Taxpayer status chosen.
- Device / e-fapiao live.
- Customer’s fapiao header collected correctly.
Find China tax counsel
The tax listings below are live DJ Classifieds profiles. Directory →
