Announcement on the Policy of Reducing and Exempting Value-added Tax for Small-scale VAT Taxpayers

　　Ministry of FinanceState Taxation Administration

　　Announcement on the Policy of Reducing and Exempting Value-added Tax for Small-scale VAT Taxpayers

　　Document No.: Announcement No. 19 [2023] of the Ministry of Finance and the State Taxation Administration

　　Issued by: Ministry of Finance and State Taxation Administration

　　Date of Issuance: 2023-08-01

　　Status: Full Text Valid

　　In order to further support the development of small and micro enterprises and individual businesses, the continuation of the VAT reduction and exemption policy for small-scale taxpayers is announced as follows:

　　I. Small-scale VAT taxpayers with monthly sales of less than RMB100,000 (inclusive) are exempted from VAT.

　　II. For small-scale VAT taxpayers,VAT is levied at a reduced rate of 1% on taxable sales income where a 3% levy rate applies, and VAT is prepaid at a reduced rate of 1% on items with pre-paid VAT where a 3% pre-payment rate applies.

　　applying a 3% levy rate on their taxable sales revenue are subject to a reduced 1% levy rate for VAT; prepaid VAT items subject to a 3% pre-payment rate are subject to a reduced 1% pre-payment rate for VAT prepayment.

　　III. This Announcement is effective until December 31, 2027.

　　The Announcement is hereby made.

　　State Taxation AdministrationMinistry of Finance

　　August 1, 2023