In brief
On 25 December 2025, the State Council issued the long-expected Value Added Tax (VAT) Law Implementation Rules (“Implementation Rules”), which enters into effect on 1 January 2026 along with the PRC VAT Law. In this client alert, we will highlight key provisions in the Implementation Rules that introduce significant changes to the prevailing VAT regime, and provide our observations and perspectives.
Download the full version of China: Tax updates – VAT Law Implementation Rules.
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Jason Wen, Senior Tax Consulting Director, and Jinghua Liu and Luis Zhang, Partners, FenXun, have co-authored this legal update. FenXun established a joint operation office with Baker McKenzie in China as Baker McKenzie FenXun, which was approved by the Shanghai Justice Bureau in 2015.
© 2026 Baker McKenzie FenXun (FTZ) Joint Operation Office. All rights reserved. This client alert/publication/presentation has been prepared for clients and professional associates of Baker McKenzie FenXun (FTZ) Joint Operation Office. Whilst every effort has been made to ensure accuracy, this publication is not an exhaustive treatment of the area of law discussed and no responsibility for any loss occasioned to any person acting or refraining from action as a result of material in this publication is accepted by Baker McKenzie FenXun (FTZ) Joint Operation Office.