> China has one of the highest sales tax at the retail level, including VAT and various fees; so high in fact the actual rate is a state secret.
How do the private companies know how much taxes to pay then? Or all shops state-run?
How do the private companies know how much taxes to pay then? Or all shops state-run?
I saw a clip of Chinese news broadcast giving shocking rates on Youtube, like a quarter to a third, but unfortunately I cannot find it now. There is little public information about effective sales tax rate. However, people do realize it. High taxes is one reason Chinese tourists buy a lot when overseas; they could see the price difference.
20-25% VAT is pretty common in Europe, so while that's high I wouldn't go so far as shocking.
It has been a while so it is a little fuzzy, but I recall the broadcaster said up to 50% of pre-tax price. The official VAT rate is like 17% now, I think (just googled it). So it is other fees imposed by local governments that are onerous.