- The new VAT law clarifies the destination principle for taxable transactions.
- The law simplifies rules on deemed taxable transactions.
- The law sets out four types of non-taxable transactions.
- The existing three-tier tax rate structure is preserved.
- The applicable tax rate for a transaction involving different tax rates is determined by the main transaction.
- A clearer definition of sales revenue is provided.
- The law adjusted the scope of non-creditable VAT.
- Taxpayers can carry forward or seek refund of excessive input VAT.
- Exemptions for sectors like agriculture and welfare are included.
- Enhanced information-sharing systems between tax authorities and other government bodies are mandated.
Source: jdsupra.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.
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