- The Ministry of Finance and State Taxation Administration issued the “Administrative Measures for the Advance Payment of Value-Added Tax,” effective January 1, 2026.
- The measures apply to taxpayers (excluding individuals) who meet certain conditions under the VAT Law Implementation Regulations.
- Taxpayers providing construction services across different administrative regions must prepay VAT to the local tax authority where the service is provided.
- The prepayment rate is 2% for the general tax method and 3% for the simplified tax method.
- Prepaid VAT is calculated based on the total contract amount minus subcontracting payments, and must be paid before the end of the tax filing period following the taxable event.
Source: lexiscn.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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