Can small-scale taxpayers enjoying VAT exemption issue VAT special invoices?

1. From April 1, 2022 to December 31, 2022, small-scale VAT taxpayers will be exempted from VAT on taxable sales income at a rate of 3%; Prepaid VAT items subject to 3% prepayment rate will be suspended.

2. For small-scale VAT taxpayers exempt from VAT on taxable sales income at a rate of 3%, tax exempt ordinary invoices shall be issued according to regulations.

3. If taxpayers choose to give up tax exemption and issue special VAT invoices, they shall issue special VAT invoices with a collection rate of 3%.

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Announcement of the Ministry of Finance and the State Administration of Taxation of the People's Republic of China on Exemption from VAT for Small scale VAT Taxpayers

In order to further support the development of small and micro enterprises, the relevant VAT policies are announced as follows:

From April 1, 2022 to December 31, 2022, small-scale VAT taxpayers will be exempted from VAT on taxable sales income at a rate of 3%; Prepaid VAT items subject to 3% prepayment rate will be suspended.

The implementation period of the preferential tax policies specified in Article 1 of the Announcement of the Ministry of Finance and the State Administration of Taxation on Continuing the Implementation of the Preferential Tax Policies for Epidemic Diseases (Announcement No. 7 of 2021 of the Ministry of Finance and the State Administration of Taxation) is extended to March 31, 2022.

It is hereby announced.

Ministry of Finance, State Administration of Taxation

March 24, 2022

Announcement of the State Administration of Taxation on the Administration of VAT Exemption for Small scale Taxpayers

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

1、 For small-scale VAT taxpayers exempt from VAT on taxable sales income at a rate of 3%, tax exempt ordinary invoices shall be issued according to regulations. If taxpayers choose to give up tax exemption and issue special VAT invoices, they shall issue special VAT invoices with a collection rate of 3%.

2、 For small-scale VAT taxpayers who obtain taxable sales income and have tax obligations before March 31, 2022, VAT invoices have been issued at a rate of 3% or 1%. If red ink invoices need to be issued in case of sales discounts, suspension or returns, red ink invoices should be issued at the corresponding rate; If the invoice is wrong and needs to be re issued, the red ink invoice shall be issued according to the corresponding collection rate, and then the correct blue ink invoice shall be re issued.

3、 If a small-scale VAT taxpayer conducts VAT taxable sales, and the total monthly sales amount does not exceed 150000 yuan (if one quarter is a tax period, the quarterly sales amount does not exceed 450000 yuan, the same below), the sales amount exempted from VAT and other items shall be filled in the relevant columns of "Small and micro enterprises' tax-free sales amount" or "sales amount not reaching the threshold" in the Declaration Form of VAT and Additional Taxes (applicable to small-scale taxpayers).

If the total monthly sales amount exceeds 150000 yuan, all the sales amount exempted from VAT and other items shall be filled in the "other tax-free sales amount" column of the Declaration Form of VAT and Additional Taxes (applicable to small-scale taxpayers) and the corresponding column of the Declaration Details of VAT Reduction and Exemption.

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 (CS [2018] No. 33), and Article 5 of the Announcement of the State Administration of Taxation on Issues Concerning the Collection and Administration of VAT Exemption Policies for Small scale Taxpayers (No. 4 in 2019) Taxpayers who have been re registered as stipulated in Article 6 of the Announcement of the State Administration of Taxation on Clarifying Certain Value added Tax Collection and Management Issues such as Used Car Distribution (No. 9 in 2020) are included in the accounting of the "Taxes Payable - Input Tax to be Deducted" title and the balance as of March 31, 2022 according to the relevant provisions of the Announcement of the State Administration of Taxation on Unifying the Standards for Small scale Taxpayers (No. 18 in 2018), In 2022, it can be included in fixed assets, intangible assets, investment assets, inventory and other related items, and deducted before enterprise income tax or individual income tax according to regulations. The depreciation and amortization that have been deducted before tax will not be adjusted; For the part that cannot be divided, it can be deducted at one time before enterprise income tax or individual income tax in 2022.

5、 Small scale taxpayers who have issued VAT invoices using special tax control equipment such as golden tax disk and tax control disk can continue to issue invoices using existing equipment, or they can voluntarily issue invoices to tax authorities for free to exchange tax UKeys.

6、 This announcement shall come into force as of April 1, 2022.

It is hereby announced.