Taxes
Several types of tax are applicable to diesel exhaust fluid (DEF) sold in China, including Consumption Tax, Value Added Tax (VAT), export and import duties.
At present, four types of import tax are applicable to DEF:
•Ordinary Tax (150%). Applicable to countries or regions that do not have any trade agreement with China
•Agreed Tariff (0-40%). Different rates are set for countries which have a trade agreement with China
•Most Favored Nation Tax (50%)
•Preferential Tax (0%)
It is worth noting that the Chinese government imposes an additional 10% tax for DEF imported from the U.S. In addition, 9% VAT is applicable for domestically produced DEF in China.