China Cabinet Announces Regulations Implementing VAT Law

The Chinese State Council Dec. 30, 2025, posted Decree No. 826, on regulations implementing the VAT law. The decree includes measures: 1) applying VAT to tangible goods, energy, intangible assets, real estate, and various services; 2) clarifying taxpayer categories; 3) requiring enterprises, organizations, and individuals to register and follow either the general or simplified VAT calculation method; 4) applying zero-rated VAT to cross-border sales of specified services and intangible assets, including R&D services, contract energy management, business management services, software, circuit design and testing, technology transfers, international transportation, and aerospace transportation; 5) exempting agriculture, medical institutions, schools, elderly care, and ...