增值税法实施条例公开征求意见——增强税制确定性和可操作性

Core Viewpoint - The implementation of the new Value-Added Tax (VAT) Law in China, effective January 1, 2026, is supported by the draft implementation regulations released by the Ministry of Finance and the State Taxation Administration, which aim to ensure a smooth transition and stability in tax policy [1][2]. Group 1: Implementation Details - The draft implementation regulations consist of 57 articles across six chapters, detailing aspects such as tax rates, taxable amounts, tax incentives, and collection management, thereby clarifying and refining the provisions of the VAT Law [1]. - The regulations enhance the certainty and operability of the tax system by providing specific definitions and rules regarding taxable transactions, including goods, services, intangible assets, and real estate [1][3]. Group 2: Policy Stability - The draft maintains the basic stability of existing tax policies, particularly regarding the financial sector, which has been under VAT since the "business tax to VAT" reform in 2016, ensuring that loan interest income remains non-deductible for input VAT [2]. - The draft also addresses the complexities of cross-border sales of services and intangible assets, aligning with international practices while considering China's specific circumstances [2]. Group 3: Tax Principles Optimization - The draft optimizes tax policies in line with the fundamental principles of VAT, such as the non-deductibility of input VAT for non-taxable transactions, which aligns with international practices [3]. - For long-term assets exceeding 5 million yuan, the draft allows full input VAT deduction upon purchase, with subsequent adjustments based on mixed-use applications, balancing policy transition and VAT principles [3].