The State Administration of Taxation ("SAT") has recently issued the Announcement on Adjusting Matters concerning the Filing of Value-Added Tax Returns (the "Announcement"), which aims to monitor the receipt of taxpayers of the preferential policies on value-added tax ("VAT") deductions and exemptions. The Announcement shall come into force from July 1, 2015.
The Announcement specifies that a Statement of Value-Added Tax Deductions and Exemptions (the "Statement") shall be added to the materials required to be submitted for VAT returns, which shall be filled in and submitted by general taxpayers and small-scale taxpayers eligible for the preferential policies on VAT deductions or exemptions at the time when they undergo the filing procedures for VAT returns. Small-scale VAT taxpayers which are eligible for VAT exemption as their monthly revenue is no more than CNY30,000 (or their quarterly revenue is no more than CNY90,000 if they file quarterly), or the monthly revenue of which is below the threshold for VAT taxation shall not be required to fill in and submit the Statement. This means that small-scale taxpayers with no data to enter into Column 9 "Other VAT-Exempted Revenue" and Column 13 "Tax Payable Deducted or Exempted for the Current Period" in the main VAT return form for the period concerned shall not be required to fill in and submit the Statement.