# VAT
Latest news and articles about VAT
Total: 3 articles found
Taxing Times: China’s Quest to Rebalance Its Fiscal Architecture
China is renewing its decade-long push to increase the proportion of direct taxes as part of the 15th Five-Year Plan to foster a consumption-led economy. Despite the strategic necessity of reducing reliance on regressive indirect taxes like VAT, the transition faces significant hurdles due to fiscal dependence, administrative challenges, and a sensitive real estate market.
China’s Platforms Tell on Restaurants: The End of ‘Underreported’ Revenues for Small Eateries
A June 2025 rule forcing internet platforms to report merchant transaction data, combined with China’s Gold Tax Phase IV, has enabled tax authorities to reconcile platform receipts with restaurants’ declared sales. Small eateries that historically underreported income through cash sales and shared food‑court licensing now face retroactive tax bills, forced licensing, and a surge in compliance costs. The policy aims to broaden the tax base and curb unhealthy price competition but risks short‑term closures and consolidation in the sector.
China Raises VAT Per‑Sale Threshold to 1,000 Yuan, Extends Relief to Small Businesses
China will raise the VAT per‑transaction threshold to 1,000 yuan from January 2026 and extend formal VAT threshold relief to registered small‑scale taxpayers (annual sales ≤5 million yuan). The rules preserve higher monthly/quarterly thresholds for periodic filers, carve out exceptions for sustained commercial activities, and strengthen withholding obligations for payers.