Key Insights on the Detailed Implementation Rules of the New VAT Law

Background

On 30 December 2025, the Detailed Implementation Rules of the PRC VAT Law (“DIR”) were officially promulgated. The DIR are the core administrative regulation supporting the PRC VAT Law (“VAT Law”) and came into force on 1 January 2026 concurrently with the VAT Law.

This newsletter provides a comparative analysis of the key changes introduced by the DIR, supported with a set of auxiliary regulations promulgated till the date of this newsletter, as compared with the VAT-related regulations applicable prior to 1 January 2026 ("Old Regulations").

Key changes from the DIR

Definition of taxable scope

The DIR aims to interpret the taxable services and intangible assets under the statutory framework of the VAT Law, placing greater emphasis on the nature and substance of transactions.

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