China’s State Administration of Taxation clarified VAT starting thresholds for the 2026 Value Added Tax Law. Natural persons’ daily threshold rises to RMB 1,000 per transaction, with special rules for continuous transactions and a monthly RMB 100,000 threshold. The announcement also simplifies compliance by deeming filing fulfilled when VAT is invoiced by authorities or withheld, and allows small‑scale taxpayers to waive exemptions transaction‑by‑transaction.
The daily VAT starting threshold for natural persons rises to RMB 1,000 per transaction.
The daily threshold does not apply; instead a monthly threshold of RMB 100,000 applies, with VAT assessed on a periodic basis.
The taxpayer is deemed to have fulfilled filing and payment obligations, eliminating the need for separate VAT declarations.
Yes, they can waive VAT exemptions to issue special VAT invoices for input deduction, and this does not trigger the 36‑month restriction.
Get VAT and indirect tax news delivered to your inbox twice a week.
No spam. Unsubscribe anytime.
China Briefing · 3 days ago
China’s new VAT Law effective 1 Jan 2026 introduces updated thresholds for small‑scale taxpayers. Monthly and quarterly thresholds remain at RMB 100,000 and RMB 300,000, while the per‑transaction threshold is doubled to RMB 1,000. Natural persons in six specific activities must aggregate sales monthly, affecting foreign‑invested enterprises’ supplier and invoicing practices.
Bloomberg Tax · 5 days ago
China's Ministry of Finance has announced that goods returned from e‑commerce exports will be exempt from import duties, import VAT and consumption tax from 1 January to 31 December 2027. The move aims to support the growth of cross‑border e‑commerce. The exemption applies to goods returned via e‑commerce platforms.
Yicai Global · 8 days ago
Chinese authorities have advanced the timing of VAT payments for firms that collect money before delivering services, requiring tax on the full amount received earlier. The change may push businesses over the CNY5 million threshold, forcing a switch to general VAT taxpayer status.
StockTitan · 8 days ago
China’s 2026 tax reform will keep domestic service enterprises exempt from VAT and introduce several other incentives. The policy also allows social insurance contributions to be deducted from taxable income, offers preferential corporate income tax rates for eligible firms, and provides personal income tax deductions to spur household demand.
Bloomberg Tax · 8 days ago
The Chinese Ministry of Finance issued Announcement No. 9/2026 on January 31, 2026, defining the goods and services subject to the 9% VAT rate. The policy lists a wide range of agricultural products, utilities, media, and real estate transactions that will be taxed at this rate.
Bloomberg Tax · 9 days ago
The Chinese Ministry of Finance issued Announcement No. 15/2026 on Feb 2 2026, outlining interim measures for input VAT deductions on long‑term assets. The measures clarify the scope of long‑term fixed assets, set a 5 million‑yuan threshold for mixed‑use assets, and define the adjustment period for deduction. These rules apply to assets acquired from Jan 1 2026 or recognized before Dec 31 2025.
