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The new VAT Law will take effect on January 1, 2026
On December 25, 2024, the Standing Committee of the National People’s Congress approved the new VAT Law (President’s Decree No. 41), which will take effect on January 1, 2026.
The law introduces significant changes compared to the current Provisional Regulation on VAT, its Implementing Rules and Caishui [2016] No. 36. However, the new VAT Law remains notably general, as its Implementing Rules and supporting regulations have yet to be released. Consequently, many aspects will require further clarification before its full implementation.
In the meantime, this Legal Flash summarizes the key changes introduced by the new VAT Law.