China's Top Legislature Adopts the Value-Added Tax Law and Two Other Laws

Recently, the Value-Added Tax Law of the People's Republic of China (the "VAT Law"), the Law of the People's Republic of China on Popularization of Science and Technology (Revised in 2024), and the Decision on Amending the Supervision Law of the People's Republic of China have been deliberated and adopted at the 13th session of the Standing Committee of the 14th National People's Congress (NPC). The VAT Law will come into effect on January 1, 2026.

The VAT Law consists of six chapters: general provisions, tax rates, tax payable, tax preferences, collection and administration, and supplementary provisions. This law regulates legislative authorizations, and the relevant provisions are either directly stipulated in the law or, after review and cleanup, incorporated into the scope of tax preferences, it also improves regulations related to tax preferences and ensures alignment with other laws, such as the Tariff Law. The VAT Law stipulates that entities and individuals (including individual businesses) that engage in taxable transactions—such as the sale of goods, services, intangible assets, or real estate—within the territory of the People's Republic of China, or the import of goods, are VAT taxpayers and must pay VAT in accordance with the VAT law.



(Source: http://www.npc.gov.cn/npc/c2/c30834/202412/t20241225_442038.html

http://www.npc.gov.cn/npc/c2/c30834/202412/t20241225_442044.html

http://www.npc.gov.cn/npc/c2/c30834/202412/t20241225_442050.html)

Note: The link to the Chinese official website of the document is for your reference.