- Implementation regulations for China’s updated VAT law effective January 1, 2026, provide clearer definitions and scope for taxable transactions.
- Rules on zero-rated VAT for certain exports and cross-border services are refined, along with eligibility criteria for VAT exemptions.
- VAT deduction practices are standardized, including clarification on deduction vouchers and input VAT methods.
- Key changes include detailed provisions for services and intangible assets, clarification of tax rates, and new rules for irrecoverable input VAT.
- Statutory exemption criteria and withholding obligations for individuals are specified.
Source: kpmg.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’s E‑Fapiao System: A Comprehensive Guide to Digital VAT Invoicing and Compliance
- China’s New VAT Rules: Key Compliance Changes and Deadlines for Businesses from 2026
- China Updates VAT Administration: New Law, SME Enforcement, E-Commerce Relief, Import Incentives Extended
- EPPO Raids in Germany Over Suspected €1.6 Million Aluminium Customs Fraud from China
- China Clarifies SME Tax Preference Rules: New Tests Target Artificial Revenue Splitting and Abuse
