China unveils regulation on implementing value-added tax law

BEIJING, Dec. 30 -- Chinese Premier Li Qiang has signed a State Council decree issuing a regulation on the implementation of the country's value-added tax (VAT) law, which will take effect on Jan. 1, 2026.

The regulation is designed to facilitate the effective enforcement of the law by providing detailed rules on its application.

The regulation specifies the scope of taxable goods, services, intangible assets and immovable property, and further defines taxpayer categories.

It also clarifies the application of VAT rates, including zero-rating for certain exports and cross-border sales of services and intangible assets.

In addition, the rules refine methods for calculating VAT payable, clarify standards for tax incentives, and strengthen VAT administration measures.

The VAT law was adopted at a session of the Standing Committee of the National People's Congress, the national legislature, in December last year.