Issued by: State Taxation Administration

Issue No.: No. 4, 2026 of the Announcement of the State Administration of Taxation

Release Date: January 30, 2026

Effective Date: January 1, 2026

Links: https://fgk.chinatax.gov.cn/zcfgk/c100012/c5247426/content.html

To ensure the smooth implementation of Announcement No. 10 of 2026 issued by the Ministry of Finance and the State Administration of Taxation, the State Administration of Taxation has formulated this Announcement to clarify the relevant administrative matters further as follows:

• For small-scale taxpayers whose taxable sales do not reach the threshold, they may choose to waive tax exemption for all or part of their taxable transactions and issue special VAT invoices. Those eligible for the policy of levying VAT at a reduced rate of 1% may also choose to waive tax reduction for all or part of their taxable transactions and issue special VAT invoices.
• Natural persons generally pay tax on a transaction-by-transaction basis. However, in six specified circumstances, including real estate leasing or receiving interest from bonds newly issued on or after August 8, 2025, the threshold standard shall apply based on monthly sales.
• For natural persons subject to transaction-by-transaction taxation, if their sales reach the threshold, they may choose to apply to the tax authority for invoice issuance, in which case the tax authority will levy the tax when issuing the invoice; or, if there is a withholding agent, the withholding agent shall declare and pay the withheld VAT; or the natural person may file a self-declaration and pay the tax from the date the tax liability arises until June 30 of the following year.