Announcement of the State Administration of Taxation on Several Value-added Tax Issues related to Harmonization of the Criteria for Small-scale Taxpayers
Announcement of the State Administration of Taxation on Several Value-added Tax Issues related to Harmonization of the Criteria for Small-scale Taxpayers
Announcement of the State Administration of Taxation on Several Value-added Tax Issues related to Harmonization of the Criteria for Small-scale Taxpayers
Announcement of the State Administration of Taxation [2018] No.18
April 20, 2018
Several value-added tax issues related to harmonization of the criteria for small-scale taxpayers are announced as follows:
I. A general taxpayer meeting all of the following conditions may opt to re-register as a small-scale taxpayer pursuant Article 2 of the Circular of the Ministry of Finance and the State Administration of Taxation on Harmonizing the Criteria for Small-scale Taxpayers of Value-added Tax (Cai Shui [2018] No.33) or remain a general taxpayer:
1. being registered as a general taxpayer in accordance with Article 13 of the Interim Regulations of the People's Republic of China on Value-added Tax and Article 28 of the Implementing Rules for the Interim Regulations of the People's Republic of China on Value-added Tax; and
2. its cumulative sales subject to VAT ("taxable sales") for the 12 consecutive months (if one month is a tax period, hereinafter the same) or for the four consecutive quarters (if one quarter is a tax period, hereinafter the same) prior to the re-registration date not exceeding CNY5 million.
Where the operating period of a taxpayer is less than 12 months or four quarters prior to the re-registration date, the cumulative taxable sales stated in the preceding paragraph shall be estimated based on the monthly or quarterly average taxable sales.
The specific scope of taxable sales shall be subject to the provisions of the Administrative Measures for the Registration of VAT General Taxpayers (Order of the State Administration of Taxation No.43) and the Announcement of the State Administration of Taxation on Several Matters concerning Administration of VAT General Taxpayer Registration (Announcement of the State Administration of Taxation [2018] No.6).
II. A taxpayer meeting the requirements of Article I of this Announcement shall complete and submit the Registration Form for General Taxpayer to be Re-registered as Small-scale Taxpayer (see Appendix for the sample form) and provide its tax registration certificate to the competent tax authority; a taxpayer having made a real-name tax registration is not required to provide its tax registration certificate.
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