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The 9 percent tax is available for certain goods that fall mainly within the categories of agricultural and utility items, while the 13 percent tax applies to other goods subject to the VAT like manufactured goods. Taxable services provided by foreign entities or individuals in China are subject to 6 percent of VAT as before. The import VAT can be calculated based on the following formula: Import VAT = Composite Assessable Price × VAT Rate                      = (Duty-Paid Price + Import Duty + Consumption Tax) × VAT Rate                     = (Duty-Paid Price + Import Duty) / (1-Consumption Tax Rate) × VAT Rate Consumption tax for imported goods China’s consumption tax (CT) is imposed on companies and organizations who manufacture and import taxable products, process taxable products under consignment, or sell taxable products.

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