China Issues New VAT Regulations Clarifying Onshore Doctrine and Mixed Transaction Rules for 2026

• China issued new VAT Regulations on 25 December 2025, supplementing the new VAT Law, both effective from 1 January 2026.
• The VAT Regulations provide detailed clarifications and interpretations to enhance the certainty of the VAT Law.
• The Regulations clarify the “onshore” doctrine, specifying when services or intangible property are considered “consumed in China” and thus taxable.
• The concept of “mixed sales” is replaced with rules for transactions involving different VAT rates, focusing on the nature of the transaction rather than the entity’s core business.

Source: wts.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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