During the 38th Session of the Standing Committee of the 13th National People’s Congress (“NPC”) held in Beijing from 27 December to 30 December 2022, the Standing Committee of the NPC reviewed and released the Draft VAT Law of the People’s Republic of China (hereinafter referred to as the “Draft Law”), which is an important milestone in China VAT legislation process.
PwC has compared the Draft Law with the Consultation Draft of VAT Law of the People’s Republic of China (hereinafter referred to as the “Consultation Draft”) and summarized the main contents of the Draft Law from taxpayer, taxable transaction, input VAT credit and VAT collection and administration perspectives. We summarize below our insights and hope our analysis will help enterprises have a better understanding of the Draft Law, and prepare in advance for the potential impacts arise from the Draft Law.
Considering the Draft Law was prepared by leveraging relevant policies of the Consultation Draft, we also include our previous analysis of the Consultation Draft at the end of the article for your reference.
Source PwC
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