Small-scale taxpayers with annual sales exceeding 5 million yuan must be converted into ordinary taxpayers 1. Small-scale taxpayers may not be converted into ordinary taxpayers even if their annual sales exceed 5 million yuan. Among them, the annual taxable sales of small-scale taxpayers are more than 5 million yuan, which conforms to the provisions of Item (1) of Article 4 of these Measures (small-scale taxpayers choose to pay taxes according to the policy), and make a written explanation to the competent tax authorities: According to Article 2 of the Measures for the Administration of the Registration of General VAT Taxpayers (hereinafter referred to as taxpayers), if the annual taxable sales of VAT taxpayers (hereinafter referred to as taxpayers) exceed the standards for small-scale taxpayers stipulated by the Ministry of Finance of People's Republic of China (PRC) and State Taxation Administration of The People's Republic of China (hereinafter referred to as the prescribed standards), Article 4 of these Measures.

What is the income of small-scale taxpayers?

The standard for small-scale taxpayers of value-added tax is annual sales of value-added tax of 5 million yuan or less. Small-scale taxpayers refer to taxpayers whose annual sales are lower than the prescribed standards, their accounting is not perfect, they can't submit accounting materials in accordance with the regulations, and they implement simple methods to collect value-added tax. The so-called imperfect accounting means that the taxable amount of output tax, input tax and value-added tax cannot be calculated correctly. Small-scale taxpayers apply the simple tax calculation method, and their tax payable refers to the value-added tax calculated according to the sales volume and the value-added tax collection rate.

Legal basis: Article 13 of the Provisional Regulations on Value-added Tax in People's Republic of China (PRC) stipulates that taxpayers other than small-scale taxpayers shall register with the competent tax authorities. The specific measures for registration shall be formulated by the competent tax authorities of the State Council. Small-scale taxpayers with sound accounting and accurate tax payment information may register with the competent tax authorities. For non-small-scale taxpayers, the tax payable shall be calculated in accordance with the relevant provisions of these regulations.