- From January 1, 2026, the new VAT Law and its regulations take effect, with clarified VAT threshold standards and management measures.
- The per-transaction VAT threshold for individuals is raised from 500 yuan to 1000 yuan, but certain transactions (e.g., property rental, scrap sales) use a monthly threshold of 100,000 yuan.
- Individuals reaching the VAT threshold can fulfill tax declaration via invoice application or withholding, reducing the need for self-declaration.
- Small-scale taxpayers can flexibly choose to waive VAT exemptions for specific transactions to issue special VAT invoices, without affecting other transactions’ eligibility for exemptions.
- The new measures aim to balance tax efficiency and fairness, reduce taxpayer burden, and ensure compliance.
Source: news.gmw.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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