Two departments: Individuals who buy homes for 2 years or more (including 2 years) are exempt from VAT for foreign sales

The Zhitong Finance App learned that on December 30, the Ministry of Finance and the State Administration of Taxation issued a notice on value-added tax policies for individual housing sales. Individuals (excluding general taxpayers in individual businesses, same below) who buy homes for less than 2 years pay VAT in full at a rate of 3%; individuals who buy homes for 2 years or more (including 2 years) and sell them abroad are exempt from VAT. This notice will take effect on January 1, 2026. Value-added tax relating to individual sales of housing has not been declared and paid before January 1, 2026, and complies with the provisions of this Notice may be enforced in accordance with this Notice.

The original text is as follows:

Notice on value-added tax policy for individual housing sales

Ministry of Finance and State Administration of Taxation Notice No. 17 of 2025

The VAT policy for individual housing sales is now announced as follows:

Individuals (excluding general taxpayers in individual businesses, same below) who buy homes for less than 2 years pay VAT in full at a rate of 3%; individuals who buy homes for 2 years or more (including 2 years) are exempt from VAT.

This notice will take effect on January 1, 2026. Article 5 (1) of the “Notice of the Ministry of Finance and the State Administration of Taxation on Fully Launching the Pilot Project to Change the Levy of Business Tax to Value-added Tax” (Finance and Tax (2016) No. 36), Annex 3, “Provisions on the Pilot Transition Policy for Changing the Levy of Business Tax to Value-added Tax” was suspended simultaneously. Value-added tax relating to individual sales of housing has not been declared and paid before January 1, 2026, and complies with the provisions of this Notice may be enforced in accordance with this Notice.

We hereby announce it.

Ministry of Finance and General Administration of Taxation

December 29, 2025

This article was selected from the “Ministry of Finance” official website, Zhitong Finance Editor: Feng Qiuyi.