- China’s VAT law and its implementation regulations were published on 30 December 2025 and take effect from 1 January 2026, replacing previous provisional regulations.
- Most previous VAT policies are retained, but there are notable adjustments, especially regarding input VAT allocation for long-term assets used in both VATable and non-VATable activities.
- The regulations clarify rules for determining the place of supply for goods, immovable property, financial instruments, and services/intangible assets, with some changes expanding the VAT scope.
- Key terms such as “consumed on site overseas” and “directly linked to goods, immovable property, or natural resources located in China” remain undefined and require further official clarification.
- Businesses should review the changes, assess their impact, and update compliance and VAT management processes accordingly.
Source: taxathand.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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