General VAT Taxpayer

General TAV taxpayers are those whose taxable sales value exceeds the threshold of the small–scale taxpayers. Once a small-scale taxpayer is recognized as a general VAT taxpayer, the small-scale taxpayer status on longer applies even if the threshold falls below the stipulated amount in the future. General VAT taxpayer can issue special VAT invoice when selling goods or providing taxable labor services and voucher for the buyer to pay the value-added tax and offset the input amount of the value-added tax in accordance with the relevant provisions.

When a small-scale VAT taxpayer has an annual taxable turnover which is more than the threshold as indicated in the following table, it has to apply for General VAT taxpayer.

New established enterprises have to meet the requirements of registered capital more than RMB 5 million and more than 50 employees or it can prove sales contracts of more than 1.8 million amounts of sales of the next year.

Rates of VAT for General taxpayer

Sales and import of following goods the tax rate are 13%:

• 1. Food grains and edible vegetable oils
• 2. Tap water, heating, air conditioning, hot water, coal gas, liquefied petroleum gas, natural gas, methane gas and coal/charcoal products for household use
• 3. Books, newspapers and magazines
• 4. Feeds, chemical fertilizers, agricultural chemicals, agricultural machinery and covering plastic film for agricultural purposes
• 5. Other goods as regulated by the State Council

Sales of goods, processing, repair and replacement services and importation of goods, the tax rate are 17%.

Here come the following questions maybe your are interested in :

• 1. What is special VAT invoice
• 2. Do you need to apply for General VAT taxpayer from the very beginning of your set up procedure?
• 3. How to apply for General VAT taxpayer qualification?

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