according to the provisions of the measures for the administration of the registration of general taxpayers of value-added tax, taxpayers of value-added tax (hereinafter referred to as taxpayers) whose annual taxable sales exceed the standards for small-scale taxpayers stipulated by the Ministry of Finance and State Taxation Administration of The People's Republic of China (hereinafter referred to as the prescribed standards) shall register with the competent tax authorities except those who choose to pay taxes according to the regulations.

the annual taxable sales refers to the cumulative sales of taxpayers applying for value-added tax within the operating period of no more than 12 months or 4 quarters, including the sales of tax declaration, the sales of inspection and compensation, and the sales of tax assessment and adjustment. For taxpayers who sell services, intangible assets or real estate (hereinafter referred to as taxable activities) with deductions, the annual taxable sales of taxable activities shall be calculated according to the sales before deduction. The sales of intangible assets and real estate transferred by taxpayers by accident are not included in the taxable sales in the taxable behavior year.

taxpayers whose annual taxable sales do not exceed the prescribed standards, who have sound accounting and can provide accurate tax information, can register as general taxpayers with the competent tax authorities. Sound accounting refers to being able to set up account books in accordance with the unified national accounting system and conduct accounting according to legal and valid vouchers. Taxpayers shall go through the registration procedures for general taxpayers with the competent tax authorities where their institutions are located. After a taxpayer is registered as a general taxpayer, it shall not be converted into a small-scale taxpayer, unless otherwise stipulated by State Taxation Administration of The People's Republic of China.