Announcement of the State Administration of Taxation on Several Matters concerning the Administration of the Registration of General Value-added Tax Taxpayers

· Document Number：Announcement No. 6 [2018] of the State Administration of Taxation

· Area of Law： Taxation

· Level of Authority： Departmental Regulatory Documents

· Date issued：01-29-2018

· Effective Date：02-01-2018

· Status： Effective

· Issuing Authority： State Administration of Taxation

Announcement of the State Administration of Taxation on Several Matters concerning the Administration of the Registration of General Value-added Tax Taxpayers
(Announcement No. 6 [2018] of the State Administration of Taxation)
To implement the Measures for the Administration of the Registration of General Value-added Tax Taxpayers (Order No. 43, SAT, hereinafter referred to as the “Measures”), the relevant matters are hereby announced as follows:
I. “Business period” as mentioned in Article 2 of the Measures means the consecutive business period during the existence of a taxpayer, including a month or quarter during which no income is obtained.
II. “Sales amount in the tax return” as mentioned in Article 2 of the Measures means all the sales amount subject to value-added tax (“VAT”) the return of which shall be filed by the taxpayer on its own, including tax-exempt sales amount and the sales amount for which the invoice is issued by the tax authority. “Sales amount added upon audit” and “sales amount adjusted upon tax assessment” shall be included in the sales amount for the current month (or quarter) during which the taxes in arrears are declared upon audit, which shall not be included in the sales amount during the taxable period.
III. “Other individuals” as mentioned in item (2) of Article 4 of the Measures means natural persons.
IV. Information on “fixed production and business premises” as mentioned in item (1) of Article 6 of the Measures means the contents filled in the “Production and Business Addresses” column of the Registration Form for A General Value-added Tax Taxpayer.
V. “Tax registration certificates” as mentioned in item (1) of Article 6 of the Measures include the relevant certificates bearing the uniform social credit codes of legal persons and other organizations issued by the administrative departments for industry and commerce or other competent departments which the taxpayers have obtained.
VI. The contents required be notified to a taxpayer in a Notice of Tax-related Matters made by the competent tax authority as prescribed in Article 8 of the Measures shall include the following: the annual taxable sales amount of the taxpayer has already exceeded the specified standard, and it shall undergo the formalities for the registration of a general VAT taxpayer or for selecting to pay taxes as a small-scale taxpayer with the tax authority within five days after receipt of the Notice of Tax-related Matters; and if it fails to do so during the specified period, it shall calculate the tax amount payable at the VAT rate on the basis of the tax amount from the month after the expiry of the time limit for the notice, and the tax amount payable shall not be credited against input tax until the taxpayer undergoes the relevant formalities.
VII. Where a taxpayer concurrently sells goods, or provides processing or repair labor services (hereinafter referred to as “provides taxable goods or labor services”) or sells services, intangible assets, or immovable properties (hereinafter referred to as “conducts any other taxable act), the sales amount of taxable goods or labor services and the sales amount of the taxable act shall be calculated respectively, and be governed by the standard for general VAT taxpayer registration respectively. Where the sales amount of any item thereof exceeds the specified standard, the taxpayer shall undergo the relevant formalities for the registration of a general VAT taxpayer as required.
VIII. The Registration Form for A General Value-Added Tax Taxpayer which has been returned to a taxpayer for retention upon verification of the competent tax authority may be used as evidence to prove the taxpayer's standing as a general VAT taxpayer.
IX. Where the last day of a time limit as prescribed in the Measures falls on a legal holiday, the day after the legal holiday shall be the last day of the time limit; or if three consecutive days or more within the time limit fall on legal holidays, the time limit shall be postponed accordingly according to the number of the holidays.
X. This Announcement shall come into force on February 1, 2018, upon which the Notice of the State Administration of Taxation on Clarifying the Opinions on the Handling of Some Articles of the Administrative Measures for the Determination of Qualification as a General Value-added Tax Taxpayer (Letter No. 139 [2010], SAT), the Announcement of the State Administration of Taxation on Issues concerning Adjusting the Administration of General Value-added Tax Taxpayers (Announcement No. 18 [2015], SAT), the Announcement of the State Administration of Taxation on Issues concerning the Administration of General Value-Added Tax Taxpayers involved in the “Three in One” Registration System Reform (Announcement No. 74 [2015], SAT), and Article 2 of the Announcement of the State Administration of Taxation on Issues concerning the Tax Collection Administration after the Comprehensive Implementation of the Pilot Program of Replacing Business Tax with Value-Added Tax (Announcement No. 23 [2016], SAT) shall be repealed.
State Administration of Taxation
January 29, 2018