- From 2026, the VAT threshold in China will be raised to reduce individual tax burdens.
- Small-scale taxpayers with monthly sales under 100,000 yuan or quarterly sales under 300,000 yuan are exempt from VAT.
- For per-transaction taxation, sales under 1,000 yuan per day are exempt from VAT.
- The new policy applies from January 1, 2026, to December 31, 2027.
- Taxable sales amounts are calculated after deducting relevant payments, and the exemption applies to the net amount.
Source: nbd.com.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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