China's NPC Standing Committee adopts law on value-added tax

China's top lawmakers on Wednesday voted to adopt a specific law on value-added tax, marking a major step in enforcing the principle of law-based taxation.

The law, approved at a session of the Standing Committee of the National People's Congress (NPC), the country’s top legislature, will take effect on January 1, 2026.

The value-added tax is one of the country’s main sources of fiscal revenues. With the enactment of the new law, 14 out of the 18 existing taxes in the country have been legislated, covering a majority of China’s taxation framework.