China: Value Added Tax exemption policy for small-scale taxpayers
China Tax Alert
On March 24, 2022, the Ministry of Finance and the State Administration of Taxation (SAT) issued an announcement regarding the Value Added Tax (VAT) exemption for the small-scale taxpayers that will be applicable from April 1, 2022 till December 31, 2022. The SAT issued Announcement (2022) No. 6 and provided official explanation on the same day, to elaborate the implementation measures related to such exemption policy.
Further to the aforementioned policy, the sales revenue of small-scale taxpayers that is generally subject to 3% VAT will now, under the policy, be VAT exempted for the period mentioned above. Only the VAT obligations that occur on or after April 1 and before December 31 2022 can be considered as qualified for exemption. Small-scale taxpayers should only issue general VAT invoice instead of special VAT invoice for such VAT exempted sales.
Contacts
-
+34 95 207 55 25