Notice on Specific Qualifications for VAT General Taxpayers

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May 18 – The State Administration of Taxation recently issued a notice regarding the specific qualifications for general taxpayers of value-added tax  in an effort to better facilitate tax management.

Guoshuihan [2010] No. 139, issued April 7, redefines the scope of the annual taxable sales, which include sales tax returns, audit check up sales, tax assessment adjustment sales, invoice sales and tax exempted sales from tax authorities. Under the new circular, audit check up sales and tax assessment adjustment sales should account for the monthly sales, not the previous tax sales.

The notice also emphasizes the consecutive operation period for VAT general taxpayers, which requires a minimum of 12 consecutive months. It states that enterprises should submit the application for VAT general taxpayer status within 10 days after receiving the tax notice from the local tax authorities.

Those who fail to submit applications on time will not enjoy tax exemptions and cannot use VAT invoices.