According to Article 6 of the Notice of the Ministry of Finance of State Taxation Administration of The People's Republic of China on Several Policies on Value-added Tax (Caishui [2005]165), when a general taxpayer cancels or is disqualified from the tutorial period and becomes a small-scale taxpayer, its inventory will not be transferred out of the input tax, and its tax credit will not be refunded. Therefore, when the general taxpayer cancels, the unrealized sales of inventory do not need to pay VAT.