China’s National People’s Congress Standing Committee Approves VAT Implementation in 2026

Forex - China's top lawmakers took a significant step in the implementation of the rule-based taxation principle by voting to adopt a special law on value-added tax (VAT). The value-added tax law, approved during the session of the Standing Committee of the National People's Congress (NPC), the country's highest legislative body, will come into effect on January 1, 2026. Value-added tax is one of the main sources of the country's fiscal revenue. With the enactment of the new law, 14 out of the existing 18 taxes in the country will be legalized, significantly covering a large part of China's taxation framework.