On August 11th, the Ministry of Finance and the State Administration of Taxation publicly solicited opinions on the draft of the Implementation Regulations of the Value Added Tax Law of the People's Republic of China. The deadline for soliciting opinions is September 10, 2025. To ensure the smooth implementation of the Value Added Tax Law of the People's Republic of China, the Ministry of Finance, together with the State Administration of Taxation, has studied and drafted the "Implementation Regulations of the Value Added Tax Law of the People's Republic of China (Draft for Comments)". The draft for soliciting opinions includes six chapters and fifty-seven articles, including general provisions, tax rates, taxable amounts, tax incentives, collection and management, and supplementary provisions. It not only follows the provisions of the value-added tax law, but also connects with the current value-added tax system, and clarifies specific regulations based on actual situations and management needs. Data shows that in 2024, the domestic value-added tax revenue will be 6667.2 billion yuan, accounting for 38.1% of the national tax revenue, and it is the most important source of tax revenue in China. In order to improve the value-added tax system conducive to high-quality development, the 13th meeting of the Standing Committee of the 14th National People's Congress passed the Value Added Tax Law of the People's Republic of China on December 25, 2024. In terms of chapter structure, the draft for soliciting opinions inherits the basic framework of the value-added tax law and reflects the relationship between the implementation regulations of the value-added tax law and the value-added tax law. The value-added tax law defines the basic content of the implementation regulations of the value-added tax law, which is an interpretation, refinement, and clarification of the relevant provisions of the value-added tax law. ”Liang Ji, Director of the Public Revenue Research Center at the Chinese Academy of Fiscal Sciences, said. The draft for soliciting opinions clarifies the scope of export goods, cross-border sales services, and intangible assets stipulated in the Value Added Tax Law, and provides detailed explanations of the applicable rules involving multiple tax rates and collection rates. One is to clarify the scope of export goods, cross-border sales services, and intangible assets that are subject to zero tax rates. The second is to clarify the applicable rules for tax rates and collection rates when a taxable transaction involves multiple tax rates and collection rates. In terms of tax incentives, the draft for soliciting opinions clarifies the specific standards for exempting value-added tax items as stipulated in the Value Added Tax Law. The second is to clarify that the scope, standards, conditions, and tax collection and management measures of tax preferential policies should be disclosed to the public in a timely manner in accordance with the law. The third is to make provisions for taxpayers who fail to separately account for value-added tax preferential items or illegally enjoy value-added tax preferential treatment through various means such as providing false materials. Li Xuhong, Vice Dean of Beijing National Institute of Accounting, stated that on the one hand, a stable tax system is more conducive to enhancing investors' confidence, stabilizing investment expectations, and is more important for attracting investment and achieving business sustainability. The draft for soliciting opinions maintains the stability of the value-added tax system framework, strengthens the connection with the value-added tax law and current value-added tax policies, can further enhance the certainty and operability of the tax system, and is conducive to stabilizing social expectations. On the other hand, one of the key tasks of current macroeconomic policies is to create a better business environment for business entities through institutional optimization, enhance their confidence, and thereby restore economic vitality. Comparing the development patterns of various countries around the world, for countries with higher levels of economic development and market maturity, investors' attention to tax incentive effects is much lower than their consideration of other investment factors, and a good tax business environment is an important influencing factor for investors' decision-making. Therefore, timely issuance of the draft for soliciting opinions will be beneficial for business entities to timely carry out various operations, investments, and strategies, and promote the high-quality development of China's economy by enhancing the certainty of the tax system. (New Society)