Recently, the real estate market is no longer prosperous as it was before 2019. Influenced by the economic downturn, China's real estate development investment is in a downward trend, and land value-added tax revenue data across the country and provinces are generally declining in volatility. In response to the changes in the real estate market, the Central Economic Work Conference in December 2024 explicitly proposed to use a series of policies to stabilize the property market , effectively prevent and resolve risks in key areas. However, the legalization of land value-added tax (LVAT) in China has been lagging behind for a long time, and the existing regulatory system for LVAT is too general and lacks sufficient attention to details, resulting in local normative documents showing significant variability and localization.

Due to the insufficient supply at the institutional level, tax disputes frequently arise in various regions in respect of tax entity elements such as the liquidation collection period of deductible items, cost-allocation methods, and liquidation units. These disputes not only increased compliance costs for enterprises, but also posed considerable challenges to the healthy development of the real estate market. With the poor performance of the industry as a whole, the effective reduction of LVAT risks requires not only the active promotion of the LVAT legislative process at the national level, but also the enhancement of tax compliance management and scientific prediction and evaluation of potential tax risks by real estate enterprises themselves. Only in this way can real estate enterprises move forward steadily and realize sustainable development in the complex and changing market environment.

The Land Value Added Tax in Real Estate Industry Compliance Report is a legal research report based on HUA SHUI’s in-depth observation of the real estate industry and profound summary of its experience in representing land value added tax cases in the real estate industry. It aims at observing the trend of land value added tax collection and policy changes in the real estate industry, analyzing the high-frequency controversy points of land value added tax settlement in combination with the cases thereof, and putting forward the professional strategies for resolving tax-related disputes and compliance recommendations, with a view to providing useful guidance for real estate enterprises in preventing risks and resolving disputes.

Click to download:Land Value Added Tax (LVAT) Compliance Report for the Real Estate Sector (2025)