China MOF Posts Announcement on VAT Preferential Policies

The Chinese Ministry of Finance Jan. 31 posted Announcement No. 10/2026, on preferential policies under the VAT law. The announcement includes: 1) the VAT thresholds for small-scale taxpayers’ taxable transactions, from Jan. 1, 2026, to Dec. 31, 2027, of at least 100,000 Chinese yuan (US$14,413) in monthly sales, 300,000 yuan (US$43,241) in quarterly sales, or 1,000 yuan (US$144) in daily sales; 2) VAT-exempt items effective Jan. 1; 3) VAT-exempt items from Jan. 1, 2026, to Dec. 31, 2027; 4) the option for general taxpayers to apply the simplified calculation method and pay 3 or 5 percent VAT for specified transactions, ...