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Q：
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Effective November 1, 2026, where a domestic natural person provides taxable transactions complying with provisions, the domestic entity making payment shall be the withholding agent and withhold and remit VAT in accordance with regulations. What is the specific scope of such qualifying taxable transactions?
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A：
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Qualifying taxable transactions include R&D services, software services, design services, consulting services, radio, film and television program (work) production services, cultural services and educational services provided by natural persons.
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Q：
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On the basis of withholding VAT, is the withholding agent required to withhold additional surcharges?
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A：
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The withholding agent shall, in accordance with regulations, simultaneously withhold additional surcharges when withholding VAT.
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Q：
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If a natural person refuses the withholding agent to withhold tax in accordance with regulations, how shall the withholding agent handle the matter?
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A：
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The withholding agent shall promptly report the matter to the competent tax authority.
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Q：
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Where a domestic natural person engages in taxable transactions complying with regulations, and the withholding agent fails to perform its withholding obligation in accordance with regulations, what legal liability shall it bear?
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A：
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In accordance with the <Law of the People's Republic of China on the Administration of Tax Collection>, where a withholding agent fails to withhold or collect tax that should have been withheld or collected, the tax authority shall recover the tax from the taxpayer and impose a fine on the withholding agent of not less than 50% but not more than three times the amount of tax that should have been withheld or collected.
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Q：
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Where the withholding agent has completed the withholding declaration for VAT and additional surcharges in accordance with regulations, how shall it handle cases of sales allowance, suspension or return?
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A：
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For taxable transactions for which VAT has been withheld in accordance with regulations, if the amount of VAT to be withheld changes due to sales allowance, suspension or return, the withholding agent shall amend the withholding declaration for the withholding period.
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