Legal analysis: Interpretation of the State Administration of Taxation Announcement No. 4 of 2019: The State Administration of Taxation issued Announcement No. 23 and Announcement No. 53 in 2016, regarding the "Interim Regulations of the People's Republic of China on Value-Added Tax" For other individuals referred to in Article 9 of the Implementing Rules, the rental income obtained from leasing real estate in the form of a one-time collection of rent (including advance payment) can be shared equally during the corresponding lease period, and the monthly rental income after sharing shall not exceed 30,000. Yuan, can enjoy the tax exemption policy for small-scale taxpayers. In order to ensure that taxpayers fully enjoy the policy, the policy will continue to be implemented after the tax exemption standard is raised to 100,000 yuan.

So if an individual rents out real estate and charges a lump sum of rent, and the average monthly rent does not exceed 100,000 yuan, he or she will be exempt from VAT.

Legal basis: "Provisional Regulations of the People's Republic of China on Value-Added Tax" Article 1 Sales of goods or processing, repair and repair services (hereinafter referred to as labor services) within the territory of the People's Republic of China, sales Units and individuals that provide services, intangible assets, real estate, and imported goods are VAT taxpayers and must pay VAT in accordance with these Regulations.