China’s Ministry of Finance and State Taxation Administration has reclassified certain telecom services, raising the VAT rate from 6% to 9% on mobile data, SMS, MMS, and broadband access. The change takes effect from the beginning of 2026, prompting operators to consider price adjustments or bundle redesigns to mitigate revenue impacts.
The VAT rate will increase to 9% from the previous 6%.
The change takes effect from the beginning of 2026.
Mobile data, SMS, MMS, fixed-line, mobile and satellite broadband access are all subject to the new rate.
China’s Ministry of Finance and State Taxation Administration issued the updated rules.
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