- China adopts a new law on value-added tax
- The law was approved by the Standing Committee of the National People’s Congress
- It will be effective from January 1, 2026
- This law is a part of China’s ongoing fiscal and tax system reforms
- 14 out of 18 tax categories in China are now legislated
- The new VAT law aims to stabilize the tax system and boost economic confidence
- VAT reforms have been significant in recent years, enhancing the modern VAT system
- VAT revenue in China for the first 11 months of the year was 6.12 trillion yuan
- This revenue represents about 37.8 percent of the total tax revenue
- Accelerated tax legislation is crucial for improving the business environment and supporting high-quality development
Source: chinatax.gov.cn
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.
