Three Ministries Clarify Transition of Import VAT Preferential Policies After Implementation of the VAT Law

On February 10, 2026, the Ministry of Finance, the General Administration of Customs, and the State Taxation Administration issued the Announcement on the Transition of Import Value-Added Tax (VAT) Preferential Policies After the Implementation of the VAT Law (Announcement No. 17 of 2026 of the Ministry of Finance, the General Administration of Customs and the State Taxation Administration) (the “Announcement”).

The Announcement states that the import VAT preferential policies specified in the Notice on VAT Policies for Anti-Cancer Drugs and the Notice on VAT Policies for Rare Disease Drugs issued by the Ministry of Finance, the General Administration of Customs, the State Taxation Administration and the National Medical Products Administration shall continue to apply from January 1, 2026 to December 31, 2027. Other existing import VAT preferential policies and relevant supporting documents that were effective before the implementation of the VAT Law with an expiration date after January 1, 2026 shall continue to be implemented in accordance with the original provisions.