Two Departments Issue Series New VAT Policies with the Filing of Value-Added Tax Returns Optimized Accordingly

The Ministry of Finance (MOF) and the State Taxation Administration (STA) have jointly issued the Announcement on Relevant Matters Concerning Input Value-Added Tax Credit and Others, the Administrative Measures for the Advance Payment of Value-Added Tax, and the Interim Measures for the Credit of Input Value-Added Tax on Long-term Assets, all effective from January 1, 2026. The STA subsequently released the Announcement on Adjusting Relevant Matters Concerning the Filing of Value-Added Tax Returns (the "Announcement"), with effect from February 1, 2026.

The Announcement mainly includes the following adjustments: in light of the policy change whereby "labor services" are incorporated into the category of "services", the scope of columns to be submitted in the main return for general VAT taxpayers is expanded to cover services, intangible assets, and immovable property; based on adjustments to the definition of sales amount, the scope for the items subject to margin-based deductions is optimized; based on the changes to the VAT threshold policy, the columns in the main return for small-scale VAT taxpayers that previously provide sales amounts and tax amounts eligible for the VAT exemption for small and micro enterprises are adjusted to provide tax-exempt sales amounts and tax amounts where sales have not reached the VAT threshold; and in response to new requirements for advance payment of VAT by enterprises engaged in oil and gas field, a new item titled "production and livelihood services" is added to the Tax Return on Advance Value-Added Tax and Surcharges.



(Source: http://szs.mof.gov.cn/zhengcefabu/202602/t20260202_3983079.htm

http://szs.mof.gov.cn/zhengcefabu/202602/t20260202_3983104.htm

http://szs.mof.gov.cn/zhengcefabu/202602/t20260202_3983105.htm

https://fgk.chinatax.gov.cn/zcfgk/c100012/c5247507/content.html)

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