On December 30, the Ministry of Finance and the State Administration of Taxation issued the “Notice on Value-added Tax Policy for Housing Sales by Individuals”, stating that individuals who buy homes for less than 2 years to sell abroad will pay the full VAT rate at a rate of 3%; individuals who buy homes for 2 years or more and sell them abroad are exempt from VAT. After the introduction of this policy, second-hand housing transaction costs will be further reduced. Based on the sale price of a house of 2 million yuan and the calculation of less than 2 years of ownership, the value-added tax to be paid before the New Deal is 100,000 yuan, and only 60,000 yuan is required after the New Deal. The policy will save 40,000 yuan in transaction costs. This is also the first time that China has adjusted the value-added tax rate for housing sales by individuals since the full “business reform and increase” in 2016.

On December 30, the Ministry of Finance and the State Administration of Taxation issued the “Notice on Value-added Tax Policy for Housing Sales by Individuals”, stating that individuals who buy homes for less than 2 years to sell abroad will pay the full VAT rate at a rate of 3%; individuals who buy homes for 2 years or more and sell them abroad are exempt from VAT. After the introduction of this policy, second-hand housing transaction costs will be further reduced. Based on the sale price of a house of 2 million yuan and the calculation of less than 2 years of ownership, the value-added tax to be paid before the New Deal is 100,000 yuan, and only 60,000 yuan is required after the New Deal. The policy will save 40,000 yuan in transaction costs. This is also the first time that China has adjusted the value-added tax rate for housing sales by individuals since the full “business reform and increase” in 2016.