Value-Added Tax Law of the People's Republic of China

中华人民共和国增值税法

Adopted at the 13th Session of the Standing Committee of the 14th National People's Congress on December 25, 2024. Effective January 1, 2026.

（2024年12月25日第十四届全国人民代表大会常务委员会第十三次会议通过）

Sources:

• Chinese official text: State Taxation Administration Policy Database (fgk.chinatax.gov.cn)

All information in this document is authentic in Chinese only. This English translation is unofficial and provided for reference purposes.

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Table of Contents

• Chapter 1 — General Provisions (Articles 1–9)
• Chapter 2 — Tax Rates (Articles 10–13)
• Chapter 3 — Tax Payable (Articles 14–22)
• Chapter 4 — Tax Preferences (Articles 23–27)
• Chapter 5 — Tax Collection and Administration (Articles 28–37)
• Chapter 6 — Supplementary Provisions (Article 38)

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Chapter 1 — General Provisions 总则

Article 1

This Law is enacted for the purposes of establishing a sound value-added tax system conducive to high-quality development, regulating the collection and payment of value-added tax, and protecting the lawful rights and interests of taxpayers.

Article 2

The work of value-added tax collection shall implement the guidelines, policies, and decisions of the Party and the State, and shall serve the national economic and social development.

Article 3

Entities and individuals (including individual businesses) that sell goods, services, intangible assets, or immovable property (hereinafter referred to as "taxable transactions") within the territory of the People's Republic of China (hereinafter referred to as "within China"), as well as those that import goods, shall be taxpayers of value-added tax and shall pay value-added tax in accordance with this Law.

The sale of goods, services, intangible assets, or immovable property refers to the transfer of ownership of goods or immovable property for consideration, the provision of services for consideration, or the transfer of ownership or right to use intangible assets for consideration.

Article 4

A taxable transaction occurring within China refers to the following circumstances:

1. In the case of the sale of goods, the place of dispatch or location of the goods is within China;

2. In the case of the sale or leasing of immovable property, or the transfer of the right to use natural resources, the immovable property or natural resources are located within China;

3. In the case of the sale of financial products, the financial products are issued within China, or the seller is an entity or individual within China;

4. Except as provided in Items (2) and (3) of this Article, in the case of the sale of services or intangible assets, the services or intangible assets are consumed within China, or the seller is an entity or individual within China.

Article 5

Where any of the following circumstances exists, it shall be deemed a taxable transaction, and value-added tax shall be paid in accordance with this Law:

1. An entity or individual business uses self-produced or consigned-for-processing goods for collective welfare or personal consumption;

2. An entity or individual business transfers goods without consideration;

3. An entity or individual transfers intangible assets, immovable property, or financial products without consideration.

Article 6

Where any of the following circumstances exists, it shall not constitute a taxable transaction and no value-added tax shall be levied:

1. Services provided by employees to their employing entity or employer for which wages and salaries are received;

2. Collection of administrative and institutional fees, or government funds;

3. Compensation obtained for requisition or expropriation in accordance with the law;

4. Interest income from deposits.

Article 7

Value-added tax is a price-exclusive tax. The sales amount of a taxable transaction shall not include the VAT amount. The VAT amount shall be separately listed on the transaction voucher in accordance with the provisions of the State Council.

Article 8

Where a taxpayer engages in a taxable transaction, the taxpayer shall, under the general tax calculation method, compute and pay value-added tax by deducting the input tax from the output tax to determine the tax payable, unless otherwise provided by this Law.

A small-scale taxpayer may compute and pay value-added tax under the simplified tax calculation method by calculating the tax payable based on the sales amount and the levy rate.

The tax calculation method for value-added tax on Sino-foreign cooperative exploitation of offshore petroleum and natural gas, and other matters, shall be implemented in accordance with the relevant provisions of the State Council.

Article 9

For the purposes of this Law, a small-scale taxpayer is a taxpayer whose annual VAT-taxable sales amount does not exceed RMB 5,000,000.

Where a small-scale taxpayer maintains sound accounting records and is able to provide accurate tax information, it may register with the competent tax authority and compute and pay value-added tax under the general tax calculation method as provided in this Law.

Based on the needs of national economic and social development, the State Council may adjust the threshold for small-scale taxpayers and shall file such adjustment with the Standing Committee of the National People's Congress for the record.

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Chapter 2 — Tax Rates 税率

Article 10

The VAT rates are as follows:

1. For taxpayers selling goods, processing, repair, and replacement services, tangible movable property leasing services, and importing goods, except as provided in Items (2), (4), and (5) of this Article, the rate shall be 13%;

2. For taxpayers selling transportation, postal, basic telecommunications, construction, and immovable property leasing services, selling immovable property, transferring land use rights, and selling or importing the following goods, except as provided in Items (4) and (5) of this Article, the rate shall be 9%:

   • 1. Agricultural products, edible vegetable oils, and edible salt;
   • 2. Tap water, heating, air conditioning, hot water, coal gas, liquefied petroleum gas, natural gas, dimethyl ether, biogas, and coal products for residential use;
   • 3. Books, newspapers, magazines, audio-visual products, and electronic publications;
   • 4. Feed, fertilizers, pesticides, agricultural machinery, and agricultural film.

3. For taxpayers selling services and intangible assets, except as provided in Items (1), (2), and (5) of this Article, the rate shall be 6%;

4. For taxpayers exporting goods, the rate shall be 0%, unless otherwise provided by the State Council;

5. For entities and individuals within China that sell services and intangible assets across borders within the scope prescribed by the State Council, the rate shall be 0%.

Article 11

The levy rate applicable to the simplified tax calculation method for computing and paying value-added tax shall be 3%.

Article 12

Where a taxpayer engages in two or more taxable transactions involving different tax rates or levy rates, the taxpayer shall separately account for the sales amounts subject to the different tax rates or levy rates. Where separate accounting is not maintained, the highest tax rate shall apply.

Article 13

Where a taxpayer engages in a single taxable transaction involving two or more tax rates or levy rates, the tax rate or levy rate applicable to the principal business of the taxable transaction shall apply.

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Chapter 3 — Tax Payable 应纳税额

Article 14

Where value-added tax is computed and paid under the general tax calculation method, the tax payable shall be the balance of the output tax for the current period after deducting the input tax for the current period.

Where value-added tax is computed and paid under the simplified tax calculation method, the tax payable shall be the sales amount for the current period multiplied by the levy rate.

For imported goods, value-added tax shall be computed and paid by multiplying the composite assessable price by the applicable tax rate as provided in this Law. The composite assessable price shall be the customs value plus customs duty and consumption tax; where the State Council provides otherwise, such provisions shall prevail.

Article 15

Where an overseas entity or individual engages in a taxable transaction within China, the purchaser shall be the withholding agent, except where a domestic agent is entrusted to file and pay the tax in accordance with the provisions of the State Council.

Where a withholding agent withholds and remits tax in accordance with this Law, the tax amount to be withheld shall be calculated by multiplying the sales amount by the tax rate.

Article 16

Output tax refers to the VAT amount calculated by a taxpayer on a taxable transaction by multiplying the sales amount by the tax rate prescribed in this Law.

Input tax refers to the VAT amount paid or borne by a taxpayer on the purchase of goods, services, intangible assets, or immovable property.

A taxpayer shall deduct input tax from output tax on the basis of VAT deduction vouchers as prescribed by laws, administrative regulations, or the State Council.

Article 17

Sales amount refers to the total consideration related to a taxable transaction obtained by a taxpayer, including all consideration corresponding to monetary and non-monetary forms of economic benefits, but excluding the output tax calculated under the general tax calculation method and the tax payable calculated under the simplified tax calculation method.

Article 18

Sales amounts shall be calculated in Renminbi. Where a taxpayer settles a sales amount in a currency other than Renminbi, it shall be converted into Renminbi for calculation.

Article 19

In the case of a deemed taxable transaction as prescribed in Article 5 of this Law or where the sales amount is in a non-monetary form, the taxpayer shall determine the sales amount based on the market price.

Article 20

Where the sales amount is significantly low or high without a justifiable reason, the tax authority may assess the sales amount in accordance with the Tax Collection and Administration Law of the People's Republic of China and relevant administrative regulations.

Article 21

Where the input tax for the current period exceeds the output tax for the current period, the taxpayer may, in accordance with the provisions of the State Council, choose to carry forward the excess to the next period for continued deduction or apply for a refund.

Article 22

The following input tax of a taxpayer shall not be deducted from its output tax:

1. Input tax corresponding to items subject to the simplified tax calculation method;

2. Input tax corresponding to items exempt from value-added tax;

3. Input tax corresponding to items involving abnormal losses;

4. Input tax corresponding to goods, services, intangible assets, or immovable property purchased and used for collective welfare or personal consumption;

5. Input tax corresponding to catering services, daily services for residents, and entertainment services purchased and directly used for consumption;

6. Other input tax as prescribed by the State Council.

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Chapter 4 — Tax Preferences 税收优惠

Article 23

Where a small-scale taxpayer engages in a taxable transaction and its sales amount does not reach the tax threshold, value-added tax shall be exempt. Where the tax threshold is reached, the full amount of value-added tax shall be computed and paid in accordance with this Law.

The tax threshold standard referred to in the preceding paragraph shall be prescribed by the State Council and filed with the Standing Committee of the National People's Congress for the record.

Article 24

The following items shall be exempt from value-added tax:

1. Self-produced agricultural products sold by agricultural producers; agricultural mechanized plowing, irrigation and drainage, pest and disease control, plant protection, agricultural and livestock insurance, and related technical training services; breeding and disease prevention for poultry, livestock, and aquatic animals;

2. Medical services provided by medical institutions;

3. Antique books; articles sold by natural persons that have been previously used by themselves;

4. Imported instruments and equipment directly used for scientific research, scientific experimentation, and teaching;

5. Materials and equipment imported as gratuitous aid from foreign governments and international organizations;

6. Articles imported directly by organizations for persons with disabilities specifically for the use of persons with disabilities; services provided by individual persons with disabilities;

7. Childcare and nursing services provided by nurseries, kindergartens, elderly care institutions, and institutions for persons with disabilities; marriage introduction services; funeral services;

8. Academic education services provided by schools; services provided by students through work-study programs;

9. Ticket revenue from cultural activities organized by memorial halls, museums, cultural centers, cultural relic protection site management institutions, art galleries, exhibition halls, calligraphy and painting academies, and libraries; ticket revenue from cultural and religious activities organized by religious venues.

The specific standards for the tax-exempt items referred to in the preceding paragraph shall be prescribed by the State Council.

Article 25

Based on the needs of national economic and social development, the State Council may formulate special preferential VAT policies for circumstances such as supporting the development of micro and small enterprises, supporting key industries, encouraging innovation and entrepreneurship and employment, and donations to public welfare undertakings, and shall file such policies with the Standing Committee of the National People's Congress for the record.

The State Council shall conduct timely evaluation and adjustment of VAT preferential policies.

Article 26

Where a taxpayer concurrently engages in VAT-preferential items, it shall separately account for the sales amount of the VAT-preferential items. Items for which separate accounting is not maintained shall not enjoy the tax preferences.

Article 27

A taxpayer may waive VAT preferences. Where preferences are waived, the taxpayer shall not enjoy the relevant tax preferences for a period of 36 months, except in the case of small-scale taxpayers.

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Chapter 5 — Tax Collection and Administration 征收管理

Article 28

The time at which the obligation to pay value-added tax arises shall be determined in accordance with the following provisions:

1. For a taxable transaction, the obligation to pay tax arises on the day when payment for the sale is received or the voucher for claiming payment is obtained; where an invoice is issued first, it arises on the day the invoice is issued;

2. For a deemed taxable transaction, the obligation to pay tax arises on the day the deemed taxable transaction is completed;

3. For imported goods, the obligation to pay tax arises on the day the goods are declared for import at customs.

The obligation of a withholding agent to withhold value-added tax arises on the same day as the taxpayer's obligation to pay value-added tax.

Article 29

The place for paying value-added tax shall be determined in accordance with the following provisions:

1. A taxpayer with a fixed place of production or business shall file tax returns with the competent tax authority at the location of its institution or place of residence. Where the head office and branch are not located in the same county (city), they shall each file tax returns with the competent tax authority at their respective locations; with the approval of the competent fiscal and tax authorities at or above the provincial level, the head office may file consolidated tax returns with the competent tax authority at the location of the head office;

2. A taxpayer without a fixed place of production or business shall file tax returns with the competent tax authority at the place where the taxable transaction occurs; where the taxpayer fails to file, the competent tax authority at the location of its institution or place of residence shall collect the outstanding tax;

3. A natural person selling or leasing immovable property, transferring the right to use natural resources, or providing construction services shall file tax returns with the competent tax authority at the location of the immovable property, the location of the natural resources, or the place where the construction services occur;

4. A taxpayer importing goods shall file tax returns at the place designated by the customs authority;

5. A withholding agent shall file and pay the withheld tax with the competent tax authority at the location of its institution or place of residence; where the location of its institution or place of residence is outside China, it shall file and pay the withheld tax with the competent tax authority at the place where the taxable transaction occurs.

Article 30

The tax computation period for value-added tax shall be 10 days, 15 days, one month, or one quarter. The specific tax computation period of a taxpayer shall be determined by the competent tax authority based on the amount of tax payable by the taxpayer. A taxpayer that does not frequently engage in taxable transactions may pay tax on a per-transaction basis.

Where a taxpayer has a tax computation period of one month or one quarter, it shall file tax returns within 15 days after the end of the period. Where a taxpayer has a tax computation period of 10 days or 15 days, it shall file tax returns within 15 days from the first day of the following month.

The tax computation period and the time limit for filing tax returns applicable to a withholding agent for remitting the withheld tax shall be implemented in accordance with the preceding two paragraphs.

A taxpayer importing goods shall file and pay tax within the time limit prescribed by the customs authority.

Article 31

Where a taxpayer has a tax computation period of 10 days or 15 days, the taxpayer shall prepay tax within 5 days after the end of the period.

Where laws or administrative regulations provide otherwise for the prepayment of tax by a taxpayer, such provisions shall prevail.

Article 32

Value-added tax shall be collected by the tax authority. Value-added tax on imported goods shall be collected by the customs authority on behalf of the tax authority.

The customs authority shall provide the tax authority with information on the collection of value-added tax on its behalf and information on the export declaration of goods.

The method for levying value-added tax on articles carried or mailed into China by individuals shall be formulated by the State Council and filed with the Standing Committee of the National People's Congress for the record.

Article 33

Where a taxpayer exports goods or sells services or intangible assets across borders to which the zero rate applies, the taxpayer shall file with the competent tax authority for a tax refund (or exemption). The specific measures for export tax refund (or exemption) shall be formulated by the State Council.

Article 34

Taxpayers shall issue and use VAT invoices in accordance with the law. VAT invoices include paper invoices and electronic invoices. Electronic invoices shall have the same legal effect as paper invoices.

The State shall actively promote the use of electronic invoices.

Article 35

The tax authority shall establish a VAT-related tax information sharing mechanism and a coordination mechanism with the Ministry of Industry and Information Technology, the Ministry of Public Security, the General Administration of Customs, the State Administration for Market Regulation, the People's Bank of China, the financial regulatory authority, and other departments.

The relevant departments shall, within the scope of their respective duties and in accordance with laws and administrative regulations, support and assist the tax authority in carrying out VAT collection and administration.

Article 36

The collection and administration of value-added tax shall be implemented in accordance with this Law and the Tax Collection and Administration Law of the People's Republic of China.

Article 37

Where taxpayers, withholding agents, tax authorities, and their staff violate the provisions of this Law, they shall be held legally liable in accordance with the Tax Collection and Administration Law of the People's Republic of China and relevant laws and administrative regulations.

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Chapter 6 — Supplementary Provisions 附则

Article 38

This Law shall come into effect on January 1, 2026. The Interim Regulations of the People's Republic of China on Value-Added Tax shall be repealed simultaneously.