KPMG China outlines the key provisions of the newly issued Implementation Regulations of China’s Value‑Added Tax Law, which came into force on 1 January 2026. The regulations refine definitions of taxable transactions, clarify zero‑rate eligibility for cross‑border services and intangible assets, and provide detailed guidance on VAT deduction and exemption criteria. Taxpayers should review the new rules to ensure compliance and optimize VAT management.
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VatCalc · about 1 month ago
China’s new VAT Law took effect on 1 January 2026, prompting a series of administrative releases that align preferential regimes, customs treatment, and reporting obligations. The guidance tightens SME VAT incentives, extends cross‑border e‑commerce import VAT exemptions until 2027, and introduces new import VAT incentives for strategic sectors that run until 2030. Multinational groups should review compliance and documentation to meet the updated thresholds and reporting requirements.
China Briefing · about 1 month ago
China’s new VAT Law took effect on 1 January 2026, prompting a coordinated overhaul of preferential policies and administrative rules. Import tax incentives for sectors such as pharmaceuticals, R&D, and energy were extended through 2030, while the Hainan Free Trade Port launched a zero‑tariff resident consumption regime. The State Taxation Administration also clarified SME income‑splitting rules, tightening compliance for small‑scale taxpayers.
PV Tech · about 2 months ago
China has removed the 9% export VAT rebate on PV modules, marking a shift from price‑led subsidies to value‑based competition. The change is expected to raise costs for manufacturers and influence module pricing across markets. The policy reflects industry maturity and a focus on quality, efficiency, and long‑term bankability.
Jiemian · 2 months ago
China's Ministry of Finance announced a phased rollback of VAT export rebates for battery products, cutting the rebate from 9% to 6% from April 2026 to December 2026 and eliminating it entirely from January 2027. Photovoltaic product rebates will also be scrapped from April 2026. The move is expected to squeeze margins for exporters unless they can pass costs to overseas buyers, with industry experts forecasting gradual price increases of 2–3% for power batteries and 2–4% for energy storage batteries.
OFI International · 2 months ago
China has lowered the import VAT on 16 agricultural products, including refined sunflower and rapeseed oils, from 13% to 9% effective 2 February 2026. A new tariff line 1512190010 was created for refined sunflower oil, and the change applies to a range of oils and fats. Products imported from the USA remain subject to retaliatory MFN tariffs.
VatCalc · 2 months ago
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.
This summary was published on VATfaqs.com on 6 January 2026. It relates to VAT developments in China. The original source is KPMG China.
