# oil and gas

China Tightens VAT Rules: New Guidance Clarifies Input Deductions, Long‑term Assets and Prepayment Obligations

China has issued three implementing measures to clarify how businesses deduct input VAT, treat high‑value long‑term assets and manage VAT prepayments, along with transitional filing changes. The rules reduce legal ambiguity but require firms to adjust accounting systems and cash‑flow planning, with construction, real estate and oil & gas particularly affected.