- China passed a new value-added tax law that consolidates previous regulations into a single framework
- The law was approved by the Standing Committee of the National People’s Congress and will take effect on January 1, 2026
- VAT is a major indirect tax in China, initially based on the Interim Regulation of VAT by the State Council
- The law categorizes taxpayers into general and small-scale taxpayers, with the threshold set at annual taxable sales over RMB 5 million
- VAT is the largest tax category in China, making up about 38 percent of national tax revenue in 2023
- The new VAT law includes exemptions for certain agricultural products, imported scientific and teaching equipment, goods for people with disabilities, and services by welfare institutions
- The government retains the ability to expand tax exemptions to support specific sectors or businesses
Source: business-standard.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.
