China approves first unified VAT law, effective January 2026

China's VAT revenue totalled 6.12 trillion yuan (~$851.56 billion) in the first 11 months of 2024, representing around 37.8 per cent of the country's total tax revenue, as per Chinese media reports.

Fourteen of the 18 tax categories in force in China have already been codified into law, accounting for most of the tax revenue. The country in the recent years has consistently advanced fiscal and tax system reforms, implementing a series of VAT reforms to rapidly build a modern VAT framework.

"The adoption of the law on value-added tax consolidates the achievements of VAT reform in recent years, which is conducive to enhancing the certainty of the tax system, stabilising expectations and boosting confidence. It is an important achievement in deepening the reform of the fiscal and tax system," said Li Xuhong, vice president of the Beijing National Accounting Institute.

ALCHEMPro News Desk (SG)