# withholding

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.