China News Service, Beijing, March 31 (Reporter Zhao Jianhua) The Ministry of Finance and the State Administration of Taxation of China issued an announcement on the 31st that from April 1, 2021 to December 31, 2022, monthly sales of 150,000 yuan (RMB, The same below) the following small-scale VAT taxpayers are exempted from VAT to further support the development of small and micro enterprises.
The State Administration of Taxation stated that small-scale taxpayers enjoy the VAT exemption policy for monthly sales of less than 150,000 yuan, which can be enjoyed by taxpayers by self-declaration to ensure that the preferential tax policies can be enjoyed quickly.
Small-scale taxpayers who engage in VAT taxable sales and whose total monthly sales do not exceed 150,000 yuan (with a quarter as a tax period, quarterly sales do not exceed 450,000 yuan) are exempt from VAT.
If a small-scale taxpayer engages in value-added taxable sales with a total monthly sales of more than 150,000 yuan, but after deducting the sales of real estate in the current period, the sales of goods, labor, services, and intangible assets do not exceed 150,000 yuan. The sales obtained are exempt from value-added tax.
Small-scale taxpayers who pay taxes for a fixed period can choose to pay one month or one quarter as the tax period. Once selected, it cannot be changed within one fiscal year.
Small-scale taxpayers who apply the VAT difference taxation policy shall determine whether they can enjoy the VAT exemption policy based on the sales amount after the difference.
Small-scale taxpayers who should pay value-added tax in advance in accordance with current regulations do not need to pay tax in advance if their monthly sales in the place of advance payment do not exceed 150,000 yuan.
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