Type: Draft Legislation
Chinese legislators released a draft VAT law in January. In addition to combining numerous existing rules, this law moves in the direction of requiring non-resident providers of digital services to comply with VAT regulations.
The VAT is mentioned as being applied “for the sale of services and intangible assets, where the services and intangible assets are consumed within China, or the sellers are domestic entities or individuals”.
In 2023, the measure is likely to become a law.
Effective date: January 2023
