China’s VAT Reform: Data-Driven Tax Administration and New Compliance Rules

China’s new VAT framework modernizes indirect tax administration, moving toward more data-driven and integrated enforcement.
It introduces a new time-of-supply rule that taxes advance payments for services before performance.
It adds general anti-avoidance rules to VAT regulations.
Cross-border VAT rules are refined using a place-of-consumption principle, exempting some overseas-consumed on-the-spot services while expanding tax scope for certain overseas entities tied to Chinese assets.
Businesses need to build VAT management into their systems and day-to-day operations.

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.