Guangzhou Gov’t Clarifies VAT General Taxpayer Issues

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Jul. 21 – The Guangzhou municipal tax bureau recently clarified some regulations affecting VAT general taxpayers during their guidance period.

According to the notice, the tax registration office will approve the registered capital, which may refer to the total registered capital if it is the registered capital of a branch. For taxpayers who are not required to input registered capital when registering with the industrial and commercial authorities (such as sole proprietorship and partnerships), the registered capital shall then be deemed as zero.

The notice further stipulates that VAT general taxpayers who want to purchase VAT invoices during guidance period should pay the VAT in advance.

The notice also clarified the process of receive tax credit for VAT paid in advance. Prepaid VAT can offset the taxpayer’s current payable VAT, and any remaining can be used for future VAT prepayments.

For more information or advice on China’s tax regime, please contact Dezan Shira & Associates at