- China passed a new value-added tax law set to start on January 1, 2026
- VAT is a major source of revenue in China, making up 38% of national tax revenue in 2023
- The law includes exemptions for certain agricultural products, scientific and educational imports, goods for the disabled, and services by welfare institutions
- The government may add new items eligible for tax deductions to support specific sectors or businesses
- With this new law, 14 out of 18 tax categories in China now have specific legislation
- The law was approved by the Standing Committee of the National People’s Congress
- Recent tax incentives were introduced for home and land transactions to aid the property market
- VAT exemption applies to residents selling their homes after two years of ownership
- Extension of a VAT refund policy for domestic and foreign research entities purchasing Chinese equipment until 2027
- In 2019, China lowered VAT rates for manufacturers and the transport and construction sectors
- Despite a global economic slowdown, VAT revenue decreased by 4.7% in the first 11 months of the year, but saw a slight increase in November
Source: scantv.al
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.
