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If your business qualifies as a small-scale VAT payer in China, there’s a temporary policy you need to be aware of. Here’s a quick, no?fluff summary.
1. Thresholders & Exemptions
Quarterly filers: If your total sales for the quarter are below RMB 300,000, VAT on regular VAT invoices is exempt.
Monthly filers: If your total sales for the month are below RMB 100,000, VAT on regular VAT invoices is exempt.
2. Important Reminder
2.1 Once you exceed the threshold, VAT applies to all sales for that period—not just the portion above the limit.
2.2 Regardless of whether you expect to qualify for the exemption,
all invoices must be issued with the 1% VAT rate. This is a fixed requirement under the policy.
2.3 Special Invoices = Tax Payable
Even if your total sales stay under the threshold,
any VAT?special invoices (fapiao) issued will trigger VAT liability on the amount covered by those special invoices. No exemption applies to special invoices.
2.4 This is a
temporary relief measure and will expire on
December 31, 2027.
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