China Updates — June 2026

VAT in China: Six Month Into 2026 - China’s VAT Law Enters into Force

The principal VAT development during the first half of 2026 was the entry into force of the Value-Added Tax Law of the People’s Republic of China and its Implementation Regulations on 1 January 2026. The new legislation replaces the Provisional VAT Regulations that had governed the system since 1994 and establishes, for the first time, a statutory framework for China’s VAT regime.