VAT Law Implementation Regulations to take effect from 2026

On December 19, 2025, the State Council passed the Implementing Regulations for the VAT Law (Regulations), which are an essential part of the VAT legal framework and a key safeguard for the effective enforcement of the VAT Law.

Key features of the Regulations

• Maintaining stability: Most existing rules remain unchanged, avoiding additional burdens for businesses. For instance, the scope of taxable items, deduction rules, and export tax refunds remain the same, with some refinements…