- China has finalized a unified VAT system, replacing the former Business Tax, with the new VAT Law effective January 1, 2026.
- The law introduces three VAT rates (13%, 9%, 6%) and is supported by new digital systems, including Golden Tax Phase IV and nationwide e-fapiao (electronic VAT invoices).
- State Council Decree 810 requires digital platforms to file quarterly tax reports, increasing compliance requirements for both domestic and foreign businesses.
- The reform modernizes China’s tax system, improves transparency, strengthens enforcement, and aligns with international standards.
- The transition simplifies compliance for domestic taxpayers but increases IT and reporting demands, especially for SMEs and cross-border businesses.
Source: fiscal-requirements.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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