- From January 1, 2026, China’s new VAT Law and regulations will take effect, with clarified thresholds and compliance rules.
- The daily VAT starting threshold for natural persons increases from RMB 500 to RMB 1,000 per transaction; transactions below this are generally VAT-exempt.
- For recurring transactions like real estate leasing, a monthly threshold of RMB 100,000 applies instead of the daily threshold.
- Compliance is simplified: if VAT is invoiced or withheld by authorities, individuals are deemed to have fulfilled their obligations, reducing the need for separate filings.
- Small-scale taxpayers can waive VAT exemptions per transaction to issue special invoices, without triggering the usual 36-month restriction.
Source: vatcalc.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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