Core Viewpoint - The announcement clarifies the scope of the two preferential VAT rates of 9% and 6%, effective from January 1, 2026, detailing the specific goods and services applicable under these rates [1]. Group 1: VAT Rate Structure - The main VAT rates in China are 13% (standard rate), 9%, and 6% (preferential rates) [1]. - The announcement specifies the categories of goods eligible for the 9% VAT rate, including agricultural products, edible oils, salt, tap water, and natural gas, among others [1]. Group 2: Changes in Goods and Services - In the category of edible oils, the announcement expands the list to include palm oil, fennel oil, coconut oil, walnut oil, olive oil, and several others, in addition to previously listed oils [2]. - For agricultural machinery, new categories such as livestock machinery, fishery machinery, forestry machinery, and small farming tools have been added to the existing list [2]. - The definition of transportation agency services has been modified, and the concept of "modern services" has been eliminated, indicating a shift in how services are categorized [2]. Group 3: Service Categories - The sales services are categorized into six major types: transportation, postal, telecommunications, construction, financial, and production/living services, each with further distinctions [3]. - Transportation, construction, and real estate transactions are subject to the 9% VAT rate, while tangible asset leasing is subject to the 13% rate, and other services generally fall under the 6% rate [3].