Key Metrics
11.86
Heat Index-
Impact LevelMedium
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Scope LevelNational
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Last Update2026-02-01
Key Impacts
Negative Impacts (10)
Event Overview
The reclassification of mobile and internet services as basic telecom services will lead to a higher VAT rate. This policy shift is expected to affect the financial performance of telecommunications companies, with potential implications for service pricing and consumer costs.
Collect Records
China to Increase VAT on Mobile and Internet Services
Starting January 1, 2026, the tax category for mobile data, SMS, MMS, and internet broadband services in China will change from value-added telecom services to basic telecom services. This change will increase the VAT rate from 6% to 9%. The adjustment is expected to impact the revenue and profits of China Mobile.