Value-Added Tax (VAT) is a tax that is paid on materials when a factory buys them, and in many cases can be refunded at least in part if the factory exports the goods they have made with those materials.  If you’re sourcing product from China it’s important that you have at least some basic knowledge of the VAT system here.  This is because a factory may try to pass the cost of the VAT onto unsuspecting buyers.   Sourcjuice, the well-read blog for information on sourcing from China, has recently posted several good articles on the topic which I recommend you take a look at before making your next China purchase.

This post is written by a quality control expert in China. For more information, please see our Alibaba Company Profile.

Yes, sure, but you should know some products the returned percentage is much less, also it is base on the cost, if the cost is large, the 2% returned is also good, then the manufacturer will consider about it, also base on quantity, if the quantity is less, then then the manufactuer added the VAT, the cost will be up, will you accept them?


So some manufactuer make the quotation they will not add the VAT percentage on the cost, even they will not charge the return from country.


VAT is only for Chinese homeland, it will not be much effective to oversea market.


Such as China promotion policy, The farmer buy the products on market cost, but the goverment pay the subsidy for the farmer. So I think this is a Chinese policy, the purpose is urging the exportation with the money form our own porket.