Announcement on Issuing the Administrative Measures for the Prepayment of Value-Added Tax
Announcement on Issuing the Administrative Measures for the Prepayment of Value-Added Tax
Announcement on Issuing the Administrative Measures for the Prepayment of Value-Added Tax
Announcement of the Ministry of Finance and the State Taxation Administration [2026] No. 14
January 30, 2026
The Ministry of Finance and the State Taxation Administration have formulated the Administrative Measures for the Prepayment of Value-Added Tax in accordance with the relevant provisions of the Implementation Regulations of the Law of the People's Republic of China on Value-Added Tax to continue the existing systems and practices, which are hereby promulgated and shall come into force from January 1, 2026. In case of any inconsistency between previous provisions and this Announcement, this Announcement shall prevail.
This Announcement is hereby given.
Administrative Measures for the Prepayment of Value-Added Tax
Chapter I General Provisions
Article 1 These Measures are formulated in accordance with the relevant provisions of the Implementation Regulations of the Law of the People's Republic of China on Value-Added Tax (hereinafter referred to as the "Implementation Regulations of the VAT Law").
Article 2 Taxpayers (excluding natural persons, the same below) who fall under the circumstances specified in the first paragraph of Article 45 of the Implementation Regulations of the VAT Law shall prepay value-added tax (VAT) in accordance with these Measures.
Chapter II Provision of Construction Services across Prefecture-level Administrative Regions (Counties and Districts within the Municipalities Directly under the Central Government)
Article 3 Taxpayers providing construction services across prefecture-level administrative regions (counties and districts within the municipalities directly under the Central Government, hereinafter referred to as "cross-regional construction services") shall prepay VAT to the competent tax authority at the location where the construction services occur, based on the time when the tax liability arises as prescribed.
Article 4 For taxpayers providing cross-regional construction services, a pre-levy rate of 2% shall be applicable to those subject to general taxation method and 3% to those subject to simplified taxation method.
Article 5 Taxpayers providing cross-regional construction services shall calculate the VAT to be prepaid based on the balance of the total tax-inclusive price of the construction services for the current period after deducting the subcontract payment, using the following formula:
Tax to be prepaid = (Total tax-inclusive price for the current period - Subcontract payment) ÷ (1 + Applicable tax rate or pre-levy rate) × Pre-levy rate
If the balance after deducting the subcontract payment is negative, it may be carried forward to the next period for deduction at the time of prepayment.
Taxpayers shall calculate the tax to be prepaid separately for each construction project and prepay it separately.
Article 6 Taxpayers providing cross-regional construction services shall prepay tax from the date when the tax liability arises to the end of the tax filing period of the following month (for quarterly taxpayers, the month following the end of the quarter, the same below).
Chapter III Provision of Construction Services by way of Advance Payment
Article 7 Taxpayers providing construction services by way of advance payments, except as provided in second paragraph of this Article, shall prepay VAT to the competent tax authority at the location of the taxpayer.
For taxpayers providing cross-regional construction services and collecting advance payments, VAT shall be prepaid to the competent tax authority at the location where the construction services occur, and no further prepayment is required after the tax liability arises.
Article 8 For taxpayers providing construction services by way of advance payments, a pre-levy rate of 2% shall be applicable to those subject to general taxation method and 3% to those subject to simplified taxation method.
Article 9 Taxpayers providing construction services by way of advance payments shall calculate the VAT to be prepaid based on the balance of the advance payments received for the current period after deducting the subcontract payment, using the following formula:
Tax to be prepaid = (Advance payments received for the current period - Subcontract payment) ÷ (1 + Applicable tax rate or pre-levy rate) × Pre-levy rate
If the balance after deducting the subcontract payment is negative, it may be carried forward to the next period for deduction at the time of prepayment.
Taxpayers shall calculate the tax to be prepaid separately for each construction project and make prepayment separately.
Article 10 Taxpayers providing construction services by way of advance payments, as well as those providing cross-regional construction services and receiving advance payments, shall prepay tax from the date of receiving the advance payments to the end of the tax filing period of the following month.
Chapter IV Sale of Real Estate Projects under a Pre-sale Arrangement
Article 11 Taxpayers selling real estate projects under a pre-sale arrangement shall prepay VAT to the competent tax authority at the location of the taxpayer.
Taxpayers selling real estate projects under a pre-sale arrangement refer to real estate development enterprises selling self-developed real estate projects using the pre-sale method.
Self-development includes the circumstances where real estate development enterprises construct infrastructure and buildings on land for which they have legally obtained land use rights, and where they purchase unfinished real estate projects for further development and sell them under their own name after obtaining project approval.
Article 12 Real estate development enterprises selling self-developed real estate projects under a pre-sale arrangement shall calculate the VAT to be prepaid based on the advance payments received for the current period and a pre-levy rate of 3%, using the following formula:
Tax to be prepaid = Advance payments received for the current period ÷ (1 + Applicable tax rate or pre-levy rate) × 3%
Article 13 Real estate development enterprises selling self-developed real estate projects under a pre-sale arrangement shall prepay tax within the tax filing period of the month following the receipt of advance payments.
Chapter V Transfer or Lease of Immovable Property Located in a County (City, District, or Banner) Different from the Taxpayer's Place of Establishment
Article 14 Taxpayers transferring or leasing immovable property located in a county (city, district, or banner) different from their place of establishment shall prepay VAT to the competent tax authority at the location of the immovable property based on the time when tax liability arises as prescribed.
The transfer of immovable property does not include the sale of self-developed real estate projects by real estate development enterprises.
The lease of immovable property does not include the provision of road passage services by taxpayers.
Article 15 For taxpayers transferring immovable property located in a county different from their place of establishment, a pre-levy rate of 5% shall be applicable to general taxpayers and 3% to small-scale taxpayers.
Article 16 For taxpayers transferring immovable property located in a county different from their place of establishment (excluding self-built immovable property and housing purchased for less than two years by small-scale taxpayers who are individual businesses), the VAT to be prepaid shall be calculated based on the balance of the total tax-inclusive price for the current period after deducting the original purchase price of the immovable property or the valuation at the time of acquisition, using the following formula:
Tax to be prepaid = (Total tax-inclusive price for the current period - Original purchase price of the immovable property or valuation at the time of acquisition) ÷ (1 + Applicable tax rate or pre-levy rate) × Pre-levy rate
Article 17 For taxpayers transferring self-built immovable property located in a county different from their place of establishment or housing purchased for less than two years by small-scale taxpayers who are individual businesses and located in a county different from their place of establishment, the VAT to be prepaid shall be calculated based on the total tax-inclusive price for the current period, using the following formula:
Tax to be prepaid = Total tax-inclusive price for the current period ÷ (1 + Applicable tax rate or pre-levy rate) × Pre-levy rate
Article 18 Where taxpayers deduct the original purchase price of the immovable property or the valuation at the time of acquisition from the total tax-inclusive price for the current period in accordance with the aforesaid provisions, they shall obtain invoices, court judgments, rulings, mediation agreements, or arbitral awards, or notarized creditor's documents.
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Announcement of the Ministry of Finance and the State Taxation Administration [2026] No. 14
January 30, 2026
The Ministry of Finance and the State Taxation Administration have formulated the Administrative Measures for the Prepayment of Value-Added Tax in accordance with the relevant provisions of the Implementation Regulations of the Law of the People's Republic of China on Value-Added Tax to continue the existing systems and practices, which are hereby promulgated and shall come into force from January 1, 2026. In case of any inconsistency between previous provisions and this Announcement, this Announcement shall prevail.
This Announcement is hereby given.
Administrative Measures for the Prepayment of Value-Added Tax
Chapter I General Provisions
Article 1 These Measures are formulated in accordance with the relevant provisions of the Implementation Regulations of the Law of the People's Republic of China on Value-Added Tax (hereinafter referred to as the "Implementation Regulations of the VAT Law").
Article 2 Taxpayers (excluding natural persons, the same below) who fall under the circumstances specified in the first paragraph of Article 45 of the Implementation Regulations of the VAT Law shall prepay value-added tax (VAT) in accordance with these Measures.
Chapter II Provision of Construction Services across Prefecture-level Administrative Regions (Counties and Districts within the Municipalities Directly under the Central Government)
Article 3 Taxpayers providing construction services across prefecture-level administrative regions (counties and districts within the municipalities directly under the Central Government, hereinafter referred to as "cross-regional construction services") shall prepay VAT to the competent tax authority at the location where the construction services occur, based on the time when the tax liability arises as prescribed.
Article 4 For taxpayers providing cross-regional construction services, a pre-levy rate of 2% shall be applicable to those subject to general taxation method and 3% to those subject to simplified taxation method.
Article 5 Taxpayers providing cross-regional construction services shall calculate the VAT to be prepaid based on the balance of the total tax-inclusive price of the construction services for the current period after deducting the subcontract payment, using the following formula:
Tax to be prepaid = (Total tax-inclusive price for the current period - Subcontract payment) ÷ (1 + Applicable tax rate or pre-levy rate) × Pre-levy rate
If the balance after deducting the subcontract payment is negative, it may be carried forward to the next period for deduction at the time of prepayment.
Taxpayers shall calculate the tax to be prepaid separately for each construction project and prepay it separately.
Article 6 Taxpayers providing cross-regional construction services shall prepay tax from the date when the tax liability arises to the end of the tax filing period of the following month (for quarterly taxpayers, the month following the end of the quarter, the same below).
Chapter III Provision of Construction Services by way of Advance Payment
Article 7 Taxpayers providing construction services by way of advance payments, except as provided in second paragraph of this Article, shall prepay VAT to the competent tax authority at the location of the taxpayer.
For taxpayers providing cross-regional construction services and collecting advance payments, VAT shall be prepaid to the competent tax authority at the location where the construction services occur, and no further prepayment is required after the tax liability arises.
Article 8 For taxpayers providing construction services by way of advance payments, a pre-levy rate of 2% shall be applicable to those subject to general taxation method and 3% to those subject to simplified taxation method.
Article 9 Taxpayers providing construction services by way of advance payments shall calculate the VAT to be prepaid based on the balance of the advance payments received for the current period after deducting the subcontract payment, using the following formula:
Tax to be prepaid = (Advance payments received for the current period - Subcontract payment) ÷ (1 + Applicable tax rate or pre-levy rate) × Pre-levy rate
If the balance after deducting the subcontract payment is negative, it may be carried forward to the next period for deduction at the time of prepayment.
Taxpayers shall calculate the tax to be prepaid separately for each construction project and make prepayment separately.
Article 10 Taxpayers providing construction services by way of advance payments, as well as those providing cross-regional construction services and receiving advance payments, shall prepay tax from the date of receiving the advance payments to the end of the tax filing period of the following month.
Chapter IV Sale of Real Estate Projects under a Pre-sale Arrangement
Article 11 Taxpayers selling real estate projects under a pre-sale arrangement shall prepay VAT to the competent tax authority at the location of the taxpayer.
Taxpayers selling real estate projects under a pre-sale arrangement refer to real estate development enterprises selling self-developed real estate projects using the pre-sale method.
Self-development includes the circumstances where real estate development enterprises construct infrastructure and buildings on land for which they have legally obtained land use rights, and where they purchase unfinished real estate projects for further development and sell them under their own name after obtaining project approval.
Article 12 Real estate development enterprises selling self-developed real estate projects under a pre-sale arrangement shall calculate the VAT to be prepaid based on the advance payments received for the current period and a pre-levy rate of 3%, using the following formula:
Tax to be prepaid = Advance payments received for the current period ÷ (1 + Applicable tax rate or pre-levy rate) × 3%
Article 13 Real estate development enterprises selling self-developed real estate projects under a pre-sale arrangement shall prepay tax within the tax filing period of the month following the receipt of advance payments.
Chapter V Transfer or Lease of Immovable Property Located in a County (City, District, or Banner) Different from the Taxpayer's Place of Establishment
Article 14 Taxpayers transferring or leasing immovable property located in a county (city, district, or banner) different from their place of establishment shall prepay VAT to the competent tax authority at the location of the immovable property based on the time when tax liability arises as prescribed.
The transfer of immovable property does not include the sale of self-developed real estate projects by real estate development enterprises.
The lease of immovable property does not include the provision of road passage services by taxpayers.
Article 15 For taxpayers transferring immovable property located in a county different from their place of establishment, a pre-levy rate of 5% shall be applicable to general taxpayers and 3% to small-scale taxpayers.
Article 16 For taxpayers transferring immovable property located in a county different from their place of establishment (excluding self-built immovable property and housing purchased for less than two years by small-scale taxpayers who are individual businesses), the VAT to be prepaid shall be calculated based on the balance of the total tax-inclusive price for the current period after deducting the original purchase price of the immovable property or the valuation at the time of acquisition, using the following formula:
Tax to be prepaid = (Total tax-inclusive price for the current period - Original purchase price of the immovable property or valuation at the time of acquisition) ÷ (1 + Applicable tax rate or pre-levy rate) × Pre-levy rate
Article 17 For taxpayers transferring self-built immovable property located in a county different from their place of establishment or housing purchased for less than two years by small-scale taxpayers who are individual businesses and located in a county different from their place of establishment, the VAT to be prepaid shall be calculated based on the total tax-inclusive price for the current period, using the following formula:
Tax to be prepaid = Total tax-inclusive price for the current period ÷ (1 + Applicable tax rate or pre-levy rate) × Pre-levy rate
Article 18 Where taxpayers deduct the original purchase price of the immovable property or the valuation at the time of acquisition from the total tax-inclusive price for the current period in accordance with the aforesaid provisions, they shall obtain invoices, court judgments, rulings, mediation agreements, or arbitral awards, or notarized creditor's documents.
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