- China has adopted a law for a unified VAT set to start on January 1, 2026
- The law aims to consolidate all previous VAT regulations and exemptions into a single framework
- VAT is a major revenue source for China, contributing about 38 percent of the tax income in 2023
- The new VAT law will include some exceptions, specifics of which are currently unclear
- Previous drafts of the law allowed exemptions for certain agricultural products and imported goods for specific uses
- Recent tax incentives were introduced for property and land transactions to boost the real estate market
- VAT revenue declined by 4.7 percent in the January to November period due to reduced domestic demand
- A slight increase in VAT revenue before November indicates an improving economic situation with rising sales and business activity
Source: bta.bg
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
