China’s National People’s Congress Passes New VAT Law Effective 2026

• The Standing Committee of the 14th National People’s Congress recently passed three laws including the Value Added Tax Law of the People’s Republic of China
• The Value Added Tax Law will be implemented starting January 1, 2026
• The law consists of six chapters covering general principles, tax rates, taxable amount, tax incentives, tax collection management, and supplementary provisions
• It standardizes legislative authorization and includes provisions directly in the law or incorporates them into the tax incentive category after review and standardization
• The law improves related provisions on tax incentives and ensures integration with other laws such as the Customs Law
• It specifies that entities and individuals including sole proprietors within China who sell goods, services, intangible assets, and real estate, as well as those importing goods, are taxpayers under this law and must pay VAT as stipulated

Source: lexiscn.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.

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