Standards for Small Taxpayers—Value-Added Tax

China Taxation Service
Hotline: 86-755-82143348, Email:anitayao@citilinkia.com

The value of sales mentioned in the provisions on the standards for small taxpayers specified in Article 24 of the Regulations on Value-Added Tax refers to the value of sales of the small taxpayers specified in Article 25 of the same Regulations.

The taxpayers specified in Article 24 of the above Regulations who are mainly engaged in the production of goods or the provision of taxable labor and also engaged in the wholesale or retail of goods refer to the taxpayers whose value of sales for goods or taxable labor exceeds 50% of the total annual taxable value of sales or whose value of sales of the wholesale or retail goods is below 50%.

When the fixed businesses sell goods outside their native counties （cities）， they shall apply to the competent tax authorities in the places where their institutions are located for issuing the tax management certificates on outside economic activities and return to the places where their institutions are located for making tax reports to the tax authorities.

If these businesses do not have the tax management certificates on outside economic activities issued by the competent tax authorities in the places where their institutions are located， the competent tax authorities in the places of sales must collect tax at the rate of 6%. With regard to the value of sales occurred in the places of sales， these businesses shall still make tax declarations as required after they return to the places where their institutions are located and the tax paid by them at the places of sales shall not be deducted from the payable tax in the period.

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