China's National People's Congress Standing Committee Approves Value-Added Tax Law

Forex - China's top lawmakers have taken a significant step in implementing the principle of law-based taxation by voting to adopt a special law on value-added tax (VAT). The VAT law, approved during a 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 fiscal revenue for the country. With the enactment of the new law, 14 out of the existing 18 taxes in the country will be formalized, covering a substantial part of China's taxation framework.