Announcement on the Administration of Tax Exemption for Small-scale Taxpayers

Announcement No. 6 [2022] of the State Administration of Taxation

In order to thoroughly implement the major decision and deployment of the Party Central Committee and the State Council on the implementation of the new combined tax and fee support policy, and to further support the development of small and micro enterprises, in accordance with the "Announcement of the Ministry of Finance and the State Administration of Taxation on Exempting Small-scale VAT Taxpayers from VAT" (2022 No. 15), the relevant collection and management matters are hereby announced as follows:

1. Small-scale VAT taxpayers who are exempted from VAT on their taxable sales income at a rate of 3% shall issue ordinary tax-free invoices as required. Taxpayers who choose to waive tax exemption and issue special VAT invoices shall issue special VAT invoices with a levy rate of 3%.

2. Small-scale value-added tax taxpayers have obtained taxable sales income, and the tax liability occurred before March 31, 2022, and the value-added tax invoices have been issued at the rate of 3% or 1%, and sales discounts, suspensions or refunds have occurred. If a red-letter invoice needs to be issued, a red-letter invoice shall be issued according to the corresponding collection rate; if the invoice is incorrect and needs to be re-issued, a red-letter invoice shall be issued according to the corresponding collection rate, and then the correct blue-letter invoice shall be issued again.

3. Small-scale VAT taxpayers have VAT taxable sales, and their total monthly sales do not exceed 150,000 yuan (if one quarter is a tax period, the quarterly sales do not exceed 450,000 yuan, the same below). Items such as sales that are exempt from value-added tax should be filled in the relevant columns of "VAT and surcharges declaration form (applicable to small-scale taxpayers)" "small and micro enterprise tax-free sales" or "sales below the threshold" Second-rate.

If the total monthly sales exceeds 150,000 yuan, the total sales and other items exempted from value-added tax shall be filled in the "VAT and surcharge declaration form (applicable to small-scale taxpayers)" in the "Other tax-exempt sales" column and " The corresponding column of "Detailed Form of VAT Reduction and Exemption Declaration".

4. Previously, in accordance with Article 2 of the "Notice of the Ministry of Finance and the State Administration of Taxation on Unifying the Standards for Small-scale VAT Taxpayers" (Cai Shui [2018] No. 33), the "State Administration of Taxation on the VAT exemption policy for small-scale taxpayers" Article 5 of the Announcement on Issues (No. 4 of 2019), and Article 6 of the Announcement of the State Administration of Taxation on Clarifying Several Issues Concerning the Collection and Administration of Value-Added Taxes on Used Car Distribution and Others (No. 9 of 2020) stipulates that taxpayers who are re-registered, According to the relevant provisions of the Announcement of the State Administration of Taxation on Unifying the Standards for Small-scale Taxpayers and Other Issues on Value-Added Taxes (No. 18 of 2018) The balance on March 31 can be included in fixed assets, intangible assets, investment assets, inventories and other related subjects in 2022, and it will be deducted before corporate income tax or individual income tax according to regulations. Depreciation and amortization that have been deducted before tax The sales will no longer be adjusted; the undivided part can be deducted before corporate income tax or personal income tax in 2022.

5. Small-scale taxpayers who have used special equipment for tax control such as golden tax disks and tax control disks to issue VAT invoices can continue to use existing equipment to issue invoices, or they can voluntarily exchange tax UKeys from tax authorities to issue invoices.

6. This announcement shall come into force on April 1, 2022.

Special announcement.

State Administration of Taxation

March 24, 2022

INTERPRETATION

Interpretation of the Announcement of the State Administration of Taxation on Tax Exemption for Small-scale Taxpayers

On March 5, 2022, Premier Li Keqiang clearly stated in the "Government Work Report" that "small-scale taxpayers will be exempted from value-added tax in stages". On March 24, the Ministry of Finance and the State Administration of Taxation issued the "Announcement of the Ministry of Finance and the State Administration of Taxation on Exempting Value-Added Taxes for Small-scale VAT Taxpayers" (No. 15 of 2022). In order to ensure the smooth implementation of relevant policies, the State Administration of Taxation issued a This announcement is issued to clarify the relevant collection and management issues.

1. Are the sales income of the small-scale taxpayers subject to the 3% levy rate eligible for tax exemption?

Answer: Whether a small-scale taxpayer obtains taxable sales income subject to a 3% levy rate is subject to the tax exemption policy, it should be judged according to the time when the taxpayer’s tax liability for obtaining taxable sales income occurs. If the tax liability occurs from April 1 to December 31, 2022, the tax exemption policy can be applied. If the tax liability occurs before March 31, 2022, it shall be implemented in accordance with the previous relevant policies.

2. How should a small-scale taxpayer issue an invoice after obtaining the taxable sales income subject to the 3% levy rate and enjoying the tax exemption policy?

Answer: Article 21 of the "Interim Regulations of the People's Republic of China on Value-Added Tax" stipulates that taxpayers shall not issue special VAT invoices if taxable sales are subject to tax-exemption provisions. Accordingly, Article 1 of this Announcement clarifies that small-scale value-added tax taxpayers who obtain taxable sales income subject to a 3% collection rate and enjoy the tax-free policy may issue ordinary tax-exempt invoices, but not special value-added tax invoices.

3. Can small-scale taxpayers give up tax exemption and issue special VAT invoices? If it can be issued, at what rate should a special invoice be issued?

Answer: According to Article 1 of this announcement, small-scale VAT taxpayers who obtain taxable sales income subject to a 3% collection rate may choose to waive tax exemption and issue special VAT invoices. If the taxpayer chooses to waive tax exemption and issue special VAT invoices for part or all of the taxable sales income, it shall issue a special VAT invoice with a levy rate of 3%, and calculate and pay VAT according to regulations.

4. Small-scale taxpayers have issued VAT invoices before the end of March 2022. What should they do if sales are discounted, suspended, returned, or incorrectly invoiced?

Answer: Article 2 of this announcement clarifies that small-scale taxpayers have issued VAT invoices before the end of March 2022. If a red-letter invoice needs to be issued in the event of a sales discount, suspension, return, or incorrect invoicing, the original collection rate shall be used. Issue a red letter invoice. That is: if a VAT invoice was previously issued at a 3% collection rate, a red-letter invoice should be issued at a 3% collection rate; if a VAT invoice was previously issued at a 1% collection rate, a red-letter invoice should be issued at a 1% collection rate . If the taxpayer has made a mistake in billing and needs to re-issue the invoice, after issuing the red-letter invoice, the correct blue-letter invoice shall be re-issued.

5. Small-scale taxpayers are subject to this tax exemption policy. How should they fill in the relevant tax exemption columns when filing VAT returns?

Answer: Article 3 of this announcement clarifies that small-scale VAT taxpayers conduct VAT taxable sales, and their total monthly sales do not exceed 150,000 yuan (if a quarter is a tax period, the quarterly sales do not exceed 45 million yuan). 10,000 yuan, the same below), the sales and other items exempted from value-added tax shall be filled in the "VAT and Additional Tax Returns (Applicable to Small-scale Taxpayers)" "Small and Micro Enterprises Tax-Free Sales" or "Unreachable If there are no other tax-exempt items, there is no need to fill in the "Detailed Form for VAT Reduction and Exemption Declaration"; if the total monthly sales exceeds 150,000 yuan, the total sales amount exempted from VAT should be filled in. In the "VAT and Additional Tax Returns (Applicable to Small-scale Taxpayers)" column "Other tax-exempt sales" and the corresponding column in the "VAT Tax Reduction and Exemption Declaration Details".

Whether the above-mentioned monthly sales volume exceeds 150,000 yuan shall be determined in accordance with Articles 1 and 2 of the Announcement of the State Administration of Taxation on Issues Concerning the Exemption of Value-Added Tax for Small-scale Taxpayers (No. 5 of 2021).

6. For taxpayers who have undergone re-registration from 2018 to 2020, the input tax that has not been deducted before the re-registration and the deductible tax in the current period on the date of re-registration are included in the "tax payable - input to be deducted" according to regulations. Tax” subject, can this part of the input tax be deducted from the output tax, and how should it be handled?

Answer: From 2018 to 2020, the re-registration policy has been issued for three consecutive years. The input tax that has not been declared and deducted by the re-registration taxpayer and the tax credit at the end of the current period on the re-registration date shall be included in the "tax payable - Input tax to be deducted" is used to retrospectively adjust the tax payable arising from sales discounts, refunds and other tax-related matters that occurred during the general taxpayer period. At present, the implementation of the re-registration policy has expired. How to deal with the relevant tax calculated on this subject? Article 4 of this announcement clearly stipulates that due to the re-registration, it is included in the "tax payable - input tax to be deducted" subject accounting, The balance as of March 31, 2022 can be included in fixed assets, intangible assets, investment assets, inventories and other related items in 2022, and deducted before corporate income tax or individual income tax according to regulations. Depreciation and amortization will no longer be adjusted; for the part that cannot be divided, it can be deducted before corporate income tax or individual income tax in 2022.

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