Overview of China’s New VAT Law: Scope, Rates, Incentives, and Compliance Measures

• New VAT Law in China
• Scope of taxable transactions expanded to cover goods, services, intangible assets, and real estate
• Deemed sales and free transactions now have specific criteria
• Certain activities are excluded from VAT
• Retention of three-tier VAT rate structure
• Simplified taxation levy rate reduced to 3%
• Mixed sales transactions taxed based on main transaction
• Calculation of taxable income clarified
• Input VAT treatment and non-creditable items specified
• Excessive input VAT refunds allowed
• Tax incentives for specific sectors and industries
• Emphasis on interdepartmental collaboration

Source: vatcalc.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.

---

---