Value-Added Tax Law of the People's Republic of China
Value-Added Tax Law of the People's Republic of China
Value-Added Tax Law of the People's Republic of China
Order of the President of the People's Republic of China No. 41
December 25, 2024
The Value-Added Tax Law of the People's Republic of China, adopted at the 13th Session of the Standing Committee of the 14th National People's Congress of the People's Republic of China on December 25, 2024, is hereby issued and shall come into effect on January 1, 2026.
Xi Jinping, President of the People's Republic of China
Value-Added Tax Law of the People's Republic of China
(Adopted at the 13th Session of the Standing Committee of the 14th National People's Congress of the People's Republic of China on December 25, 2024)
Contents
Chapter I General Provisions
Chapter II Tax Rates
Chapter III Tax Payable
Chapter IV Tax Preferences
Chapter V Collection and Administration
Chapter VI Supplementary Provisions
Chapter I General Provisions
Article 1 This Law is enacted to improve the value-added tax (VAT) system in support of high-quality development, regulate the collection and payment of VAT, and protect the legitimate rights and interests of taxpayers.
Article 2 The VAT administration shall adhere to the lines, principles, policies, decisions and plans of the Party and the State, serving the national economic and social development.
Article 3 Entities and individuals (including individual businesses) engaged in the sale of goods, services, intangible assets, or real estate (hereinafter "taxable transactions") within the territory of the People's Republic of China (hereinafter "within China"), or in the importation of goods, shall be considered VAT taxpayers and shall pay VAT in accordance with this Law.
The sale of goods, services, intangible assets, or real estate refers to the transfer of ownership of goods or real estate for a consideration, the provision of services for a fee, or the transfer of ownership or use rights of intangible assets for a consideration.
Article 4 Taxable transactions within China refer to the following circumstances:
(1) In the case of the sale of goods, the place of departure or location of the goods is within China;
(2) In the case of the sale or lease of real estate, or the transfer of rights to use natural resources, the location of the real estate or natural resources is within China;
(3) In the case of the sale of financial products, the financial products are issued within China, or the seller is an entity or individual within China; and
(4) Except as provided in Subparagraph 2 and 3 of this Article, for the sale of services or intangible assets, the services or intangible assets are consumed within China, or the seller is an entity or individual within China.
Article 5 Any of the following circumstances shall be deemed taxable transactions, and shall be subject to VAT in accordance with this Law:
(1) The use of self-produced or commissioned-processed goods by entities and individual businesses for collective welfare or personal consumption;
(2) Th gratuitous transfer of goods by entities and individual businesses; or
(3) The gratuitous transfer of intangible assets, real estate, or financial products by entities and individual businesses.
Article 6 The following circumstances will not be considered taxable transactions, and VAT shall not be levied:
(1) Provision of services by employees to their employing entities or employers in exchange for wages or salaries;
(2) Collection of administrative fees or government funds;
(3) Receipt of compensation for expropriation or requisition in accordance with the law; and
(4) Earning interest income on deposits.
Article 7 VAT is a tax levied on the price exclusive of the tax amount, and the sales amount of a taxable transaction does not include the VAT amount. The VAT amount shall be separately stated on the transaction receipt/voucher in accordance with the regulations of the State Council.
Article 8 Taxpayers engaging in taxable transactions shall calculate and pay VAT using the general taxation method, which involves offsetting input tax against output tax, except as provided by this Law.
Small-scale taxpayers may calculate and pay VAT based on sales amounts and levy rates in accordance with the simplified taxation method.
The taxation methods for VAT on the joint exploration of offshore petroleum and natural gas by Chinese and foreign parties shall be governed by relevant regulations of the State Council.
Article 9 For the purposes of this Law, a small-scale taxpayer refers to a taxpayer whose annual taxable sales do not exceed CNY5 million.
Small-scale taxpayers with sound accounting systems, capable of providing accurate tax information, may register with the competent tax authority and calculate and pay VAT using the general taxation method as provided in this Law.
In response to the needs of national economic and social development, the State Council may adjust the criteria for small-scale taxpayers, subject to filing with the Standing Committee of the National People's Congress.
Chapter II Tax Rates
Article 10 VAT rates are as follows:
(1) For taxpayers selling goods, processing, repair or fitting services, or tangible movable property leasing services; or importing goods, the tax rate shall be 13 percent, except as provided in Subparagraphs (2), (4), and (5) of this Article.
(2) For taxpayers selling transportation, postal, basic telecommunications, construction, or real estate leasing services; selling real estate; transferring land use rights; or selling or importing the following goods, the tax rate shall be 9 percent, except as provided in Subparagraphs (4) and (5) of this Article:
i.
......
Order of the President of the People's Republic of China No. 41
December 25, 2024
The Value-Added Tax Law of the People's Republic of China, adopted at the 13th Session of the Standing Committee of the 14th National People's Congress of the People's Republic of China on December 25, 2024, is hereby issued and shall come into effect on January 1, 2026.
Xi Jinping, President of the People's Republic of China
Value-Added Tax Law of the People's Republic of China
(Adopted at the 13th Session of the Standing Committee of the 14th National People's Congress of the People's Republic of China on December 25, 2024)
Contents
Chapter I General Provisions
Chapter II Tax Rates
Chapter III Tax Payable
Chapter IV Tax Preferences
Chapter V Collection and Administration
Chapter VI Supplementary Provisions
Chapter I General Provisions
Article 1 This Law is enacted to improve the value-added tax (VAT) system in support of high-quality development, regulate the collection and payment of VAT, and protect the legitimate rights and interests of taxpayers.
Article 2 The VAT administration shall adhere to the lines, principles, policies, decisions and plans of the Party and the State, serving the national economic and social development.
Article 3 Entities and individuals (including individual businesses) engaged in the sale of goods, services, intangible assets, or real estate (hereinafter "taxable transactions") within the territory of the People's Republic of China (hereinafter "within China"), or in the importation of goods, shall be considered VAT taxpayers and shall pay VAT in accordance with this Law.
The sale of goods, services, intangible assets, or real estate refers to the transfer of ownership of goods or real estate for a consideration, the provision of services for a fee, or the transfer of ownership or use rights of intangible assets for a consideration.
Article 4 Taxable transactions within China refer to the following circumstances:
(1) In the case of the sale of goods, the place of departure or location of the goods is within China;
(2) In the case of the sale or lease of real estate, or the transfer of rights to use natural resources, the location of the real estate or natural resources is within China;
(3) In the case of the sale of financial products, the financial products are issued within China, or the seller is an entity or individual within China; and
(4) Except as provided in Subparagraph 2 and 3 of this Article, for the sale of services or intangible assets, the services or intangible assets are consumed within China, or the seller is an entity or individual within China.
Article 5 Any of the following circumstances shall be deemed taxable transactions, and shall be subject to VAT in accordance with this Law:
(1) The use of self-produced or commissioned-processed goods by entities and individual businesses for collective welfare or personal consumption;
(2) Th gratuitous transfer of goods by entities and individual businesses; or
(3) The gratuitous transfer of intangible assets, real estate, or financial products by entities and individual businesses.
Article 6 The following circumstances will not be considered taxable transactions, and VAT shall not be levied:
(1) Provision of services by employees to their employing entities or employers in exchange for wages or salaries;
(2) Collection of administrative fees or government funds;
(3) Receipt of compensation for expropriation or requisition in accordance with the law; and
(4) Earning interest income on deposits.
Article 7 VAT is a tax levied on the price exclusive of the tax amount, and the sales amount of a taxable transaction does not include the VAT amount. The VAT amount shall be separately stated on the transaction receipt/voucher in accordance with the regulations of the State Council.
Article 8 Taxpayers engaging in taxable transactions shall calculate and pay VAT using the general taxation method, which involves offsetting input tax against output tax, except as provided by this Law.
Small-scale taxpayers may calculate and pay VAT based on sales amounts and levy rates in accordance with the simplified taxation method.
The taxation methods for VAT on the joint exploration of offshore petroleum and natural gas by Chinese and foreign parties shall be governed by relevant regulations of the State Council.
Article 9 For the purposes of this Law, a small-scale taxpayer refers to a taxpayer whose annual taxable sales do not exceed CNY5 million.
Small-scale taxpayers with sound accounting systems, capable of providing accurate tax information, may register with the competent tax authority and calculate and pay VAT using the general taxation method as provided in this Law.
In response to the needs of national economic and social development, the State Council may adjust the criteria for small-scale taxpayers, subject to filing with the Standing Committee of the National People's Congress.
Chapter II Tax Rates
Article 10 VAT rates are as follows:
(1) For taxpayers selling goods, processing, repair or fitting services, or tangible movable property leasing services; or importing goods, the tax rate shall be 13 percent, except as provided in Subparagraphs (2), (4), and (5) of this Article.
(2) For taxpayers selling transportation, postal, basic telecommunications, construction, or real estate leasing services; selling real estate; transferring land use rights; or selling or importing the following goods, the tax rate shall be 9 percent, except as provided in Subparagraphs (4) and (5) of this Article:
i.
......