- China issued new VAT guidance for mergers, divisions, sales, and exchanges via Announcement No. 13 of 2026.
- The rules clarify when such transfers can be disregarded for VAT purposes and address output VAT deductibility.
- Measures are included to prevent artificial tax avoidance structures.
- Guidance is provided for assets subject to different VAT rates and the timing of taxable events.
- VAT recovery rules for transportation fare acquisitions are specified; the rules take effect January 1, 2026.
Source: answerconnect.cch.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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