- The Chinese Ministry of Finance announced on December 25 the passage of a VAT bill by the National People’s Congress
- The new law aims to standardize the VAT collection and payment system
- The law applies to entities and individuals involved in selling goods, services, intangible assets, real estate, or importing goods
- VAT rates are set at 13 percent for goods and services like repairs, 9 percent for services like transportation and real estate leasing, 6 percent for intangible assets, and zero percent for exports and certain cross-border services
- Small-scale taxpayers with annual VAT-taxable sales up to 5 million Chinese yuan can use a 3 percent rate and a simplified VAT calculation method
- The State Council is authorized to implement preferential VAT policies to support businesses
- Exemptions are provided for goods sold by agricultural producers and equipment used in scientific research
- The law will be effective from January 1, 2026
Source: news.bloombergtax.com
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.
