China Launches Instant VAT Refund Mechanism for Foreign Tourists, Aligning with Global Best Practices In a major advancement for inbound tourism and retail, China has officially launched a real-time Value-Added Tax (VAT) refund mechanism for eligible foreign visitors. The new policy enables immediate VAT reimbursement
China modernises its VAT regime with single 2026 VAT Law The Value-Added Tax (VAT) Law of the People’s Republic of China, set to take effect on 1 January 2026, represents a significant step in modernising China’s tax framework. It consolidates decades of reforms and serves
Congress approves first consolidated VAT law for January 2026 The first consolidated Value Added Tax Law for China has been approved by the Standing Committee of the National People’s Congress on 25 December 2024. This goes to public consultation and is set to come into
Voluntary digital e-invoicing (e-fapiao) goes statewide Dec 2024 on Leqi platform Following the completion of the phased pilot of the Chinese digital e-fapiao programme, the State Taxation Administration (STS) has confirmed on November 24 2024 the full statewide operation from 1 December. This places e-invoices
2-year VAT exemption on residential property sales on real estate crisis An economic downturn and ageing pollution has put huge pressures on China’s dominant real estate sector. This is threatening domestic economic stability and wider global markets. To support the market, from 1 December 2024,
Central Committee reconsiders VAT base and rates at Third Plenum as property taxes fall China’s rulers are set for their third plenum in the current 5-year political planning cycle next month. Typically, the third plenum is reserved for economic reforms as part of the 5-year
New VAT law to alleviate slow credit refunds China’s proposed new VAT law is undergoing a second reading for the Standing Committee of the National People’s Congress. A major pillar is how to improve the poor record of VAT credit refunds for taxpayers as well
Aug 2023: Ministry of Finance provides SMB VAT relief for further 5 years as growth slows The Chinese Ministry of Finance and State Administration of Taxation have extended the exemption for small businesses from the 3% VAT rate. Also, the alternative cash-flow based VAT accounting
New draft law indicates foreign providers will face digital services VAT responsibilities In January, Chinese draft VAT law was issued. Aside from consolidating many existing laws, it includes a shift towards imposing VAT compliance obligations on non-resident providers of digital services. It talks of VAT
New draft VAT Law consolidates existing rules, adding major reforms to bring into line with OECD guidelines China has issued a new draft VAT Law to consolidate a number of existing VAT regulations, but also to continue the development of the rules inline with the
