Guides
VAT and Bookkeeping Basics for New WFOEs
A plain-language overview of how small and mid-sized WFOEs usually handle VAT reporting, fapiao discipline, and monthly closes in practice.
Chinese VAT rules depend on your taxpayer category, sector, and whether you are issuing special VAT fapiao (专用发票) to domestic clients. Most operational WFOes settle into a rhythm: disciplined issuance and collection of fapiao, monthly or quarterly declarations as required, and a close process that ties the general ledger to tax returns.
Why process matters early
Weak habits in the first two quarters—mixed personal expenses, missing supporting docs, or informal revenue recognition—create expensive clean-up before your first statutory audit cycle. It is cheaper to implement a simple policy matrix now than to reconstruct ledgers under time pressure.
Practical takeaway
Align your contract templates, fapiao request workflow, and bank reconciliation cadence before volume spikes. If you want hands-on help, our accounting team supports monthly bookkeeping and filings end-to-end.