Announcement on VAT Policy for Individual Sales of Housing

Issued by:	State Taxation Administration
Issue No.:	Announcement of the Ministry of Finance and the State Taxation Administration No. 17 [2025]
Release Date:	December 29, 2025
Effective Date	January 1, 2026
Links:	https://fgk.chinatax.gov.cn/zcfgk/c102416/c5246356/content.html

This Announcement unifies the VAT policy for individual sales of housing nationwide, with specifics as follows:

Removal of Housing Type Distinction: No distinction will be made between ordinary and non-ordinary housing.
Clarified Definition of "Individual": This does not include general VAT taxpayers among individual industrial and commercial households.
Adjustment of Levy Rate: For housing sold within 2 years of acquisition, the levy rate is reduced from 5% to 3%. For housing sold 2 years or more after acquisition, VAT is exempted.
Transitional Arrangements: Individuals who have completed sales before January 1, 2026, but have not yet filed a declaration, may follow the new policy.