The value-added tax legislation, which accounts for 30% of the national tax revenue, has just been passed! Implemented on January 1, 2026. What changes have been made to the draft of the Value Added Tax Law?

The draft generally follows the idea of shifting the tax system, maintains the current tax framework and tax burden level basically unchanged, and elevates the Provisional Regulations on Value Added Tax and relevant policy provisions into law, mainly stipulating the scope of taxation, taxpayers, tax rates, taxable amounts, tax incentives, and collection management

In the second review, there was no expected reduction in tax rates, and the three tax rates were still 13%, 9%, and 6%, plus zero tax rate. However, in the second review, it was mentioned that the tax rate applicable to the simplified tax calculation method is 3%, and the situation of a 5% tax rate was not mentioned. This means that the applicable 5% tax rate for real estate sales, rental simplified taxation, etc. may be abolished. But the final situation needs further clarification.