Core Viewpoint - The Ministry of Finance and the State Administration of Taxation have issued the "Management Measures for Prepaid Value-Added Tax" which will take effect from January 1, 2026, continuing the existing system and practices [2]. Group 1: General Provisions - The measures are formulated based on the relevant provisions of the "Implementation Regulations of the Value-Added Tax Law of the People's Republic of China" [2]. - Taxpayers, excluding individuals, must prepay value-added tax (VAT) when certain conditions are met as specified in the regulations [2]. Group 2: Construction Services Across Administrative Regions - Taxpayers providing construction services across administrative regions must prepay VAT to the tax authority where the service occurs, based on the time the tax obligation arises [3]. - The prepayment rate for general taxation method is set at 2%, while for simplified taxation method, it is 3% [3]. Group 3: Prepayment for Construction Services with Advance Payments - Taxpayers using advance payment methods for construction services must also prepay VAT to the tax authority where the service occurs [4]. - The prepayment rate remains at 2% for general taxation and 3% for simplified taxation [4]. Group 4: Real Estate Project Sales - Real estate developers selling projects through pre-sale methods must prepay VAT to the tax authority where their institution is located [5]. - The prepayment calculation for VAT is based on the total advance payments received, using a prepayment rate of 3% [5]. Group 5: Transfer or Lease of Real Estate - Taxpayers transferring or leasing real estate located outside their institution's jurisdiction must prepay VAT to the local tax authority [6]. - The prepayment rate for general taxpayers is 5%, while for small-scale taxpayers, it is 3% [6]. Group 6: Oil and Gas Field Enterprises - Oil and gas field enterprises selling services related to the production of crude oil and natural gas across provinces must prepay VAT to the tax authority where the service occurs [7]. - The prepayment rate is set at 5% for the Xinjiang region and 3% for other regions [7]. Group 7: Collection Management - Small-scale taxpayers whose total price and advance payments do not reach the VAT threshold are exempt from prepayment [8]. - Prepaid VAT can be deducted from the current VAT payable, with any unutilized amount carried forward to the next period [8].

Core Viewpoint - The Ministry of Finance and the State Taxation Administration have announced the implementation of the "Value-Added Tax Prepayment Management Measures," effective from January 1, 2026, which will standardize the prepayment of VAT for taxpayers across various scenarios [2][3]. Group 1: General Provisions - The management measures are formulated based on the relevant provisions of the "Implementation Regulations of the Value-Added Tax Law of the People's Republic of China" [5]. - Taxpayers (excluding individuals) must prepay VAT in accordance with the specified circumstances outlined in the regulations [6]. Group 2: Construction Services Across Administrative Regions - Taxpayers providing construction services across administrative regions must prepay VAT to the tax authority at the location where the service occurs, with a prepayment rate of 2% for general taxation and 3% for simplified taxation [8][14]. - The formula for calculating the prepayment of VAT is provided, allowing taxpayers to deduct subcontracting payments from the total taxable amount [5][10]. Group 3: Prepayment for Real Estate Sales - Real estate developers selling projects through pre-sale must prepay VAT based on the received prepayments at a rate of 3% [18][12]. - The prepayment must be made in the month following the receipt of the prepayment [13]. Group 4: Transfer or Lease of Real Estate - Taxpayers transferring or leasing real estate not located in the same administrative area must prepay VAT to the tax authority at the location of the real estate, with different prepayment rates for general and small-scale taxpayers [21][22]. - The calculation method for VAT prepayment is specified, including deductions for the original purchase price of the real estate [21][23]. Group 5: Oil and Gas Industry - Oil and gas enterprises selling services related to the production of crude oil and natural gas across provinces must prepay VAT to the local tax authority, with a prepayment rate of 5% in Xinjiang and 3% in other regions [27][28]. - The calculation method for VAT prepayment is also outlined for these enterprises [28]. Group 6: Collection Management - Small-scale taxpayers whose total price and prepayments do not reach the VAT threshold are exempt from prepayment [30]. - Taxpayers must maintain detailed records of their prepayments and related transactions, and failure to comply with prepayment deadlines may result in penalties [29][32].

Core Viewpoint - The Ministry of Finance and the State Taxation Administration have issued the "Management Measures for Prepaid Value-Added Tax" which will take effect on January 1, 2026, continuing the existing system and practices [1][3]. Group 1: General Provisions - The measures are formulated based on the relevant provisions of the "Implementation Regulations of the Value-Added Tax Law of the People's Republic of China" [3]. - Taxpayers (excluding individuals) must prepay value-added tax in accordance with the measures when certain conditions are met [3]. Group 2: Construction Services Across Administrative Regions - Taxpayers providing construction services across administrative regions must prepay value-added tax to the tax authority where the service occurs, based on the time the tax obligation arises [4]. - The prepayment rate for general taxation method is set at 2%, while for simplified taxation method it is 3% [4]. - The formula for calculating the prepaid tax is provided, allowing for deductions of subcontracting payments [4][5]. Group 3: Prepayment for Services with Advance Payments - Taxpayers using advance payment methods for construction services must prepay value-added tax to the tax authority where the service occurs [6]. - The prepayment rates remain the same as for construction services, with a calculation formula similar to that for construction services [7][10]. Group 4: Real Estate Project Sales - Real estate developers selling projects through pre-sale methods must prepay value-added tax to the tax authority where their institution is located [8]. - The prepayment rate for these transactions is set at 3% [8]. - Taxpayers must prepay the tax in the month following the receipt of advance payments [8]. Group 5: Transfer or Lease of Real Estate - Taxpayers transferring or leasing real estate not located in the same administrative area must prepay value-added tax to the tax authority where the real estate is located [9]. - The prepayment rates vary, with general taxpayers at 5% and small-scale taxpayers at 3% for transfers [11]. - A specific formula is provided for calculating the prepaid tax based on the total taxable amount [12]. Group 6: Oil and Gas Field Enterprises - Oil and gas field enterprises selling and producing services related to crude oil and natural gas across provinces must prepay value-added tax to the tax authority where the service occurs [13]. - The prepayment rates are 5% for Xinjiang and 3% for other regions [14]. - The calculation for prepaid tax follows a similar formula as other services [14]. Group 7: Collection Management - Small-scale taxpayers whose total price and advance payments do not reach the VAT threshold are exempt from prepayment [15]. - Prepaid VAT can be deducted from the current VAT payable, with any excess carried forward to the next period [15]. - Taxpayers must maintain detailed records of prepaid tax transactions and related documents [15][16].