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(Bloomberg) — Global stock gauges have record highs in their sights after a week in which affirmation that the Federal Reserve’s interest-rate easing cycle remains intact helped clear the way for a year-end rally.

Europe’s Stoxx 600 rose as much as 0.5% to a fresh peak. A measure for Asia advanced to less than 2% from its all-time high. S&P 500 futures were slightly lower after the benchmark posted a new closing milestone in the previous session, when gauges for blue-chip and small-cap US stocks also pushed into record territory.

Stocks pared some gains after China said it will implement export-license management for certain steel products starting next year, a reminder of the lingering trade friction that has fueled bouts of volatility throughout the year.

Friday’s advances came even as tech gauges lagged, signaling a broadening of the rally that has put a global equity index on track for a third successive year of gains. Shares of Broadcom Inc., which is vying with Nvidia Corp. for artificial-intelligence computing revenue, fell 4.8% in premarket trading after its sales outlook failed to meet lofty expectations. Nasdaq 100 futures slid 0.4%.

“Everyone is convincing themselves that there will be a Christmas rally, so it looks like there will be one, and to be honest, there’s no negative catalyst visible until the end of the year,” said Karen Georges, a fund manager at Ecofi Investissements in Paris. “Investors are keen to buy this year’s laggards, it’s a good time to diversify your portfolio at the moment.”

Delivering a third consecutive rate reduction on Wednesday, Fed Chair Jerome Powell voiced optimism that the US economy will strengthen as the inflationary impact from tariffs fades. While officials kept their outlook for just one cut in 2026, traders have stuck to bets for two such moves.

Bloomberg’s index of the dollar traded near a two-month low on Friday and was on track for a third weekly loss. Treasury 10-year yields advanced one basis point to 4.17%.

In commodities, copper climbed to a fresh record as most other industrial metals firmed after the Fed move. Gold rose for a fourth day while silver extended its all-time high. Oil rallied from its lowest close in almost two months.

Corporate News:

Shares in UBS Group AG soared to the highest intraday level since early 2008 as a group of influential lawmakers proposed watering down the capital demands that Switzerland wants to impose on the bank. SoftBank Group Corp. is studying potential acquisitions including data center operator Switch Inc., people with knowledge of the matter said, underscoring billionaire founder Masayoshi Son’s growing ambitions to ride an AI-fueled boom in digital infrastructure. Broadcom Inc., a chip company vying with Nvidia Corp. for AI computing revenue, slumped after its sales outlook for the red-hot market failed to meet investors’ lofty expectations. Some of the main moves in markets:

Stocks

The Stoxx Europe 600 rose 0.5% as of 8:54 a.m. London time S&P 500 futures were little changed Nasdaq 100 futures fell 0.2% Futures on the Dow Jones Industrial Average rose 0.3% The MSCI Asia Pacific Index rose 1.3% The MSCI Emerging Markets Index rose 1% Currencies

The Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1734 The Japanese yen fell 0.1% to 155.78 per dollar The offshore yuan was little changed at 7.0524 per dollar The British pound was little changed at $1.3383 Cryptocurrencies

Bitcoin fell 0.7% to $92,274.78 Ether fell 0.1% to $3,246.64 Bonds

The yield on 10-year Treasuries was little changed at 4.16% Germany’s 10-year yield advanced one basis point to 2.86% Britain’s 10-year yield was little changed at 4.48% Commodities

Brent crude rose 0.5% to $61.57 a barrel Spot gold rose 0.7% to $4,308.43 an ounce This story was produced with the assistance of Bloomberg Automation.

–With assistance from Shikhar Balwani.

©2025 Bloomberg L.P.

In this China Value Added Tax (VAT) Q&A, we provide clear guidance on invoicing, input tax credits, deemed sales, and cross-border transactions.

VAT compliance in China involves complex rules and interpretations that can significantly affect daily business operations. To help companies navigate these challenges, this Q&A compiles frequently asked questions based on official announcements and prevailing regulations, aligned with the principles of the new VAT Law taking effect on January 1, 2026. The answers aim to clarify practical issues such as invoice issuance, deemed sales, input tax credits, and cross-border transactions, enabling businesses to maintain compliance while optimizing tax management.

FAQs on VAT management in China

Q1. Does issuing an invoice before receiving payment or delivering goods constitute false issuance?

Answer:​ No. The parties have an actual transaction; the invoice is simply being issued in advance. According to the Interpretation of the Announcement of the State Taxation Administration on Issues Concerning Taxpayers’ Issuance of Special VAT Invoices to External Parties, as long as there is a subsequent actual transaction, issuing an invoice in advance based on the agreement does not constitute false issuance.

Q2. Can a special VAT invoice be issued externally for transactions under the simplified tax calculation method?

Answer:​ Yes. Items under the simplified tax calculation method are not within the scope of transactions for which Special VAT Invoices are prohibited from being issued.

Q3. Can an invoice be issued for a business activity outside the company’s registered business scope?

Answer:​ Yes. Issuing an invoice is not related to the business scope; invoices should be issued based on actual business activity. If such activities are conducted regularly, it is recommended to add them to the company’s business scope.

Q4. If a company’s employees book air tickets through a travel agency and obtain an electronic general VAT invoice for brokerage agency services, can the input tax be credited?

Answer:​ If the electronic general VAT invoice is issued specifically for brokerage agency services, the input tax cannot be credited. If it is an electronic general VAT invoice for domestic passenger transport services and meets the relevant conditions, the input tax can be credited.

Q5. During the Mid-Autumn Festival, a company gives shopping cards purchased from a supermarket to employees. Does this need to be treated as a deemed sale?

Answer:​ No. A shopping card is essentially a form of currency, not a good. It does not meet the conditions for a deemed sale, so it is not treated as one.

Q6. If a company’s R&D department uses inventory goods for R&D purposes, does this need to be treated as a Deemed Sale for VAT purposes?

Answer:​ No, it does not need to be treated as a deemed sale.

Q7. A company lends money externally. The interest payment date specified in the original loan agreement was later changed by a supplementary agreement. When does the VAT liability arise for this loan interest, based on the original agreement or the supplementary agreement?

Answer:​ The VAT liability arises based on the date stipulated in the supplementary agreement. According to Article 45 of Appendix 1 of Cai Shui [2016] No.36, if a written contract specifies a payment date, the VAT liability arises on that specified payment date.

Q8. A company purchases machinery equipment, and the seller is also responsible for installation and debugging. Should the seller issue a single special VAT invoice for the equipment sale, or separate invoices for the equipment and the installation?

Answer:​ If the seller manufactures the machinery and also provides installation services, the goods and the construction service should be accounted for separately, applying different tax rates or levy rates: 13 percent for the sale of goods, and nine percent or three percent for the installation service. If the equipment is purchased externally and the seller has already separately accounted for the sales of the machinery and the installation service according to the rules for concurrent operations, then the installation service can, under the “Supplier-Provided Equipment Project” provision, be subject to the simplified tax calculation method.

Q9. When a company’s employees travel abroad on business and incur expenses for accommodation and car rental, must the company withhold and remit VAT on these payments?

Answer:​ No. Accommodation and car rental expenses incurred by employees on business trips abroad are consumed overseas; they qualify as services entirely supplied outside China. This is because a) the service provider is an overseas entity or individual, b) the domestic company receives the service outside China, and c) the service starts and ends entirely outside China. Therefore, it does not fall within the scope of China’s VAT, and the company does not need to withhold and remit VAT.

Q10. When a company pays an exhibition fee to attend a trade fair overseas, does it need to withhold and remit VAT and corporate income tax (CIT)?

Answer:​ The exhibition organizer is not considered to be supplying services within China, so no VAT liability arises. Since the labor service is performed outside China, it does not constitute income sourced within China, and there is no need to withhold and remit CIT.

Q11. A company invites an expert to give a lecture and agrees to cover their round-trip airfare. If the company obtains an air transport electronic ticket itinerary with the expert’s identification information, can the company credit the related input VAT?

Answer:​ No. The expert is not an employee of the company. Even with an air transport electronic ticket itinerary containing identity information, the related input VAT cannot be credited. According to State Taxation Administration Announcement [2019] No. 31, creditable input VAT for “domestic passenger transport services” is limited to services used by employees who have signed a labor contract with the company or laborers dispatched to the company.

Q12. A company’s employee travels abroad on business and submits an air ticket with their identity information for reimbursement. Can the company credit the related input VAT?

Answer:​ No. Travel by an employee from within China to a foreign country constitutes an international transport service, not a domestic passenger transport service. Therefore, the input VAT cannot be credited.

Key takeaway

VAT compliance in China requires careful attention to invoice issuance, input tax credit eligibility, and the treatment of special scenarios such as deemed sales and cross-border transactions. While the current rules remain in force, businesses should also prepare for the new VAT Law effective January 1, 2026, which aims to enhance clarity and legal certainty. Maintaining accurate documentation and aligning practices with official interpretations will be critical for minimizing tax risks and ensuring smooth compliance during this transition.

Our tax advisory teams include experienced tax accountants, lawyers, and former tax officials who deliver deep insight into Asia’s tax environments—providing clients with comprehensive advisory and compliance support tailored to regional requirements. To arrange a consultation, please contact China@dezshira.com.