The Chinese government has lowered the country’s VAT tax from the current 17% to 16% for imported goods, which is expected to boost China’s wine imports. The new policy took effect on May 1st, 2018.
Imported wines to China, if without any FTA preferential treatments, are now subject to 14% import tax, 16% VAT and 10% excise tax.
Calculation method:
- Import tariff = CIF (or C&F) price x 14%
- Excise tax = [ (CIF + import tariff ) / (1 – 10%) ] x 10%
- Value-Added Tax = (CIF + import tariff + Excise Tax ) x 16%
As a result, the shortcut for a quick calculation would be CIF price + 46.94%
(in case of VAT at 13%, the resulting shortcut woud be CIF price + 43.13%)