VAT calculator for China
The standard VAT rate in China is 13%. To remove it from a gross price you divide by 1.1300, which is not the same as taking 13% off.
%
Price including VAT
113.00
- VAT to add
- 13.00
- Net price behind a gross one
- 100.00
- VAT inside a gross price
- 13.00
- Line total for the quantity
- 113.00
- VAT fraction of a gross price Multiply a gross figure by this to get the VAT directly.
- 0.115 044
- Gross-up multiplier
- 1.130 000
- How far the subtraction method goes wrong
- 1.69
Show the working
- Price excluding VAT = 100
- VAT rate = 13
- Price including VAT = 113
- Quantity = 1
- VAT to add = 100 * 13 / 100 = 13
- Price including VAT = 100 + 13 = 113
- Line total for the quantity = 113 * 1 = 113
- Net price behind a gross one = 113 / (1 + 13/100) = 100
- VAT inside a gross price = 113 - 100 = 13
- VAT fraction of a gross price = (1 + 13/100) > 0 ? (13/100) / (1 + 13/100) : 0 = 0.115 044
- Gross-up multiplier = 1 + 13/100 = 1.13
- wrong_way = 113 * (1 - 13/100) = 98.31
- How far the subtraction method goes wrong = 100 - 98.31 = 1.69
Values are shown to six significant figures here; the arithmetic itself runs on exact fractions and is only rounded where a number is printed.
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The formula
- gross = net x (1 + rate)
- net = gross / (1 + rate)
- VAT fraction of a gross price = rate / (100 + rate) = 0.115044
The VAT fraction is the shortcut accountants use: at 13% you multiply a gross figure by 0.115044 to get the VAT straight out.
Rates and reduced-rate categories change by legislation. The rate here is a default; check the current one before invoicing.
Frequently asked
What is the VAT rate in China?
The standard rate is 13%.
How do I remove VAT from a price?
Divide by 1.1300. Subtracting 13% instead undercharges the net figure every time.
Where the numbers come from
- Standard rates as published by the national tax authorities; reduced and zero rates are not modelled.