2021年10月26日

Starting in April, small-scale Chinese taxpayers with monthly sales of less than 150,000 yuan will be exempted from VAT

Beijing, March 31 (reporter Zhao Jianhua) China’s Ministry of Finance, the State Administration of Taxation issued a notice, from April 1, 2021 solstice December 31, 2022, for the monthly sales of 150,000 yuan (RMB, the same below) below the small-scale VAT taxpayers, VAT exemption, to further support the development of small and micro enterprises.

According to the State Administration of Taxation (SAT), small-scale taxpayers with monthly sales of less than 150,000 yuan will be exempt from VAT, which can be claimed by taxpayers themselves to ensure the preferential tax policies can be enjoyed directly.

Small taxpayers who have VAT taxable sales with the total monthly sales volume not exceeding 150,000 yuan (if one quarter is one tax period, the quarterly sales volume is not exceeding 450,000 yuan) shall be exempted from VAT. If small-scale taxpayers have VAT taxable sales, the total monthly sales amount exceeds RMB 150,000, but less than RMB 150,000 after deducting the sales amount of immovable property in the current period, the sales amount obtained from the sales of goods, labor, services and intangible assets shall be exempted from VAT.

Small-scale taxpayers who pay taxes in a fixed period can choose to pay taxes in one month or one quarter. Once chosen, no change can be made within one fiscal year. For small-scale taxpayers who apply the VAT difference levy policy, the sales amount after the difference shall determine whether they can enjoy the VAT exemption policy. For small-scale taxpayers who should pay VAT tax in advance in accordance with the current regulations, there is no need to pay tax in advance in the current period if the monthly sales volume realized in the place of advance payment does not exceed 150,000 yuan. (after)

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