China’s State Taxation Administration announced new mandatory VAT registration rules effective 1 January 2026, requiring businesses with annual taxable sales above RMB 5 million to register as general VAT taxpayers. The announcement introduces retroactive compliance, mandatory registration for specific sectors, and automatic reclassification for late registrants, increasing compliance risk for businesses near the threshold.
Taxpayers with annual taxable sales exceeding RMB 5 million (≈ €614,877) must register as general VAT taxpayers unless expressly exempt.
The rules are effective from 1 January 2026, with retroactive application to the first day of the registration period.
State‑owned grain purchasing and sales enterprises, gas stations, and air transport enterprises applying consolidated VAT payment are mandatorily included.
Failure to register on time leads to automatic classification as a general VAT taxpayer after 5 working days, with the effective date back‑dated, increasing VAT exposure and correction obligations.
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