China has announced a range of measures to help simplify its VAT regime, and support small businesses during the COVID crisis. The Ministry of Finance and the State Taxation Administration are expected to issue detailed regulations or circulars to implement these tax changes.
The changes include:
- Small taxpayers will continue to enjoy the cash-based VAT reporting regime;
- The VAT registration threshold will be raised to CNY150,000 per annum to CNY100,000; and
- Refunding input VAT newly accrued by an advanced manufacturing enterprise on a monthly basis.
China is also looking to complete its special invoice electronic reporting rollout in the Spring of this year (2021).
Source Avalara
Latest Posts in "China"
- China Lowers Luxury Car Tax Threshold to CNY 900,000, Expanding Tax Scope from July 2025
- China Revises VAT Rebate Policy 2025: Full Refunds for Key Industries, Partial for Others
- China Clarifies Tax Reporting Rules for Digital Platforms, Effective October 1, 2023
- France Cracks Down on Chinese E-Commerce Giants with Fines and Regulations
- China Releases Draft VAT Implementation Regulations for 2026 Law
