China's New VAT Law in Force: Key Changes, Open Issues, and Practical Implications for Business

The PRC VAT Law is now officially in effect, marking an important step in China’s transition toward a more formal, law-based VAT administration framework. Together with the implementation rules issued at the end of last year, the legislation codifies core VAT principles and compliance requirements that businesses must now follow strictly.

As the law moves from legislation to implementation, practical challenges are emerging. While some areas benefit from clearer rules, uncertainties remain around the interpretation and execution of certain provisions, especially for complex or non-standard transactions. Long-standing practices, such as the annual input VAT reconciliation, are also under closer scrutiny as tax authorities align enforcement more closely with the legal framework.

For foreign-invested enterprises and multinational groups operating in China, the new VAT Law presents both opportunities and risks. Companies should reassess VAT positions, processes, and documentation to ensure compliance with the new requirements, while carefully managing exposure in areas where interpretative guidance and enforcement practices continue to evolve.

In this webinar, Hannah Feng, Partner of Tax and Corporate Accounting Services, will provide a structured overview of recent VAT developments, explore their potential positive and negative impacts on operations in China, and share practical insights based on current regulatory trends and enforcement focus.

Agenda / Key Topics

1. Overview of the New VAT Law and Key Codified Changes

• Major changes formally clarified under the new legislation
• Immediate compliance implications for taxpayers

2. Unresolved Issues and Questionable Areas in Practice

• VAT treatment of special or non-routine transactions
• Interaction with the General Anti-Avoidance Rule (GAAR)
• VAT rate application in complex business and supply chain scenarios
• Annual input VAT reconciliation: legal basis, practical challenges, and common risk areas

3. Implications for Multinational and Foreign-Invested Enterprises

• Impact on transactional structuring and operational models
• Increased compliance expectations and audit exposure

4. Practical Response Strategies and Compliance Considerations

• Managing uncertainty in grey areas
• Enhancing internal controls, documentation, and VAT governance
• Preparing for potential audits and post-implementation reviews

Who Should Attend

This session is ideal for:

• Foreign-invested enterprises operating in or planning to enter China
• Senior management, finance, and tax leaders
• Multinational groups responsible for compliance, tax planning, or operational strategy

Whether you manage day-to-day VAT processes or make strategic decisions involving complex transactions and compliance risk, this webinar will provide practical guidance and actionable insights.

Registration

This webinar is FREE of charge.

For any questions, please contact Freda Chen at freda.chen@dezshira.com. We look forward to welcoming you to the session.