- 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.
Latest Posts in "China"
- China Ends Platinum Import Tax Exemption, Imposes 13% VAT, Reshaping Global Precious Metals Market
- China Ends Platinum Import VAT Exemption, Imposes 13% Tax Starting November 1
- China Expands Tourist VAT Refund Scheme to Jilin and Inner Mongolia in 2025
- Chongqing Tax Bureau Seeks Public Comments on Draft Land Value-Added Tax Policy Announcement
- China’s Unified VAT Reform: Modernizing Tax Compliance for Domestic and Foreign Businesses
