- China implemented a new VAT Law on January 1, 2026, with administrative updates from MOF, STA, and GAC to align preferential regimes, customs, and reporting.
- Enforcement of SME VAT preferences has tightened, introducing a “reasonable commercial purpose” test to prevent artificial business splitting for tax benefits.
- The import VAT exemption for returned cross-border e-commerce exports is extended to December 31, 2027, with conditions on export VAT refunds and documentation.
- VAT return reporting rules have been updated for administrative alignment, including refined classifications and expanded disclosure requirements.
- Import VAT incentives for innovation, healthcare, and energy sectors are extended through December 31, 2030, including reduced VAT rates and exemptions for specific goods and projects.
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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