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.
Qualifying small taxpayers pay a reduced 1% VAT rate instead of the standard 3%.
The exemption remains until 31 December 2027.
A reduced 3% import VAT rate, extended to 2027.
70–80% VAT refunds are available for qualifying pipeline and LNG terminal projects.
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China Briefing · 6 days 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 · 12 days 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 · 29 days 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 · 29 days 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 · about 1 month 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.
China Briefing · about 1 month 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.
