MOF and STA Roll out a Package of New VAT Rules

Recently, the Ministry of Finance (MOF) and the State Taxation Administration (STA) have jointly issued the Announcement on Matters Concerning the Specific Scope of Value-Added Tax Levy, the Announcement on Matters Concerning the Transition of VAT Preferential Policies Following the Implementation of the Value-Added Tax Law, the Announcement on Value-Added Tax and Consumption Tax Policies for Export Business, and the Announcement on Clarifying the Calculation Basis for Sales Amounts of VAT Taxable Transactions. In addition, the STA has issued a supporting Announcement on the Threshold Standards and Other Matters Concerning the Collection and Administration of Value-Added Tax (the "VAT Administration Announcement"), which shall take effect on January 1, 2026.

The VAT Administration Announcement further adjusts and optimizes the detailed rules for determining the VAT threshold standards applicable to natural persons. It clarifies that, in six specific circumstances—such as the leasing of real property by natural persons and the sale of scrapped products through "buyer-initiated invoicing"—the per-transaction VAT threshold of CNY 1,000 shall no longer apply. Instead, the VAT threshold for periodic taxation shall apply by reference, namely a monthly sales amount threshold of CNY 100,000. The VAT Administration Announcement also clarifies matters concerning the flexible application of tax reduction and exemption policies by small-scale VAT taxpayers.



(Source: https://fgk.chinatax.gov.cn/zcfgk/c100012/c5247426/content.html

https://fgk.chinatax.gov.cn/zcfgk/c102416/c5247431/content.html

https://fgk.chinatax.gov.cn/zcfgk/c102416/c5247434/content.html

https://fgk.chinatax.gov.cn/zcfgk/c102416/c5247437/content.html

https://fgk.chinatax.gov.cn/zcfgk/c102416/c5247440/content.html)

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