Self-made drinks for on-site consumption are not subject to VAT; If it is not used for on-site consumption, but for external sales, you need to pay VAT.

Announcement of State Taxation Administration of The People's Republic of China on Issues Related to Value-added Tax on Food Consumption by Taxpayers in Hotel Industry and Catering Industry in Different Places (State Taxation Administration of The People's Republic of China AnnouncementNo. 17, 2013);

Taxpayers in hotel industry and catering industry sell food consumed in different places, which belongs to non-recurring VAT taxable behavior. According to Article 29 of the Detailed Rules for the Implementation of the Provisional Regulations of the People's Republic of China on Value-added Tax (Order No.50 of State Taxation Administration of The People's Republic of China of the Ministry of Finance of People's Republic of China (PRC)), small-scale taxpayers can be selected to pay value-added tax.

This announcement shall come into force on May 1 2065438.