- Clarifies rules for VAT input tax deductions for general taxpayers on purchases such as vehicles, passenger transport, and toll services, specifying calculation methods and required documentation.
- Details conditions under which asset restructurings (mergers, splits, sales, swaps) are not subject to VAT and allow input tax deduction, provided certain business and compliance criteria are met.
- Specifies that for taxable transactions involving multiple VAT rates, the main business activity’s rate applies.
- Defines the timing for VAT liability for large equipment sales, service provision, real estate transfers, and financial institution interest income.
- The new rules take effect from January 1, 2026, and override previous conflicting regulations.
Source: thepaper.cn
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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