Global Daily Tax News, China Consults On Regulations For New VAT Law, (Aug 15, 2025)
China's State Administration of Taxation has launched a consultation on regulations governing the implementation of China's new value-added tax law, which is due to become effective from January 1, 2026.
Comments can be submitted through the website of the Ministry of Finance or the State Administration of Taxation by September 10, 2025.
The law is intended to modernize China's VAT regime and bring the rules more into line with international norms, most notably by transitioning towards the destination principle for the allocation of VAT revenue to local authorities. The Government considers that favoring the current origin principle has distorted investment decisions, favoring local authorities investing into production over promoting consumer consumption.