Taxpayers whose annual taxable value-added tax sales (hereinafter referred to as taxable sales) exceed the standards set by the Ministry of Finance and State Taxation Administration of The People's Republic of China are general taxpayers, while taxpayers who do not exceed the prescribed standards are small-scale taxpayers.
Other individuals whose annual taxable sales exceed the prescribed standards are not ordinary taxpayers. Units and individual industrial and commercial households whose annual taxable sales exceed the prescribed standards but do not frequently engage in taxable activities may choose to pay taxes according to small-scale taxpayers.
Article 2 (7) of the Announcement of State Taxation Administration of The People's Republic of China on Tax Collection and Management Matters Related to the Pilot Reform of Business Tax to Value-added Tax (State Taxation Administration of The People's Republic of China Announcement No.2016 No.23) stipulates that if the pilot taxpayers sell goods, provide processing, repair and repair services and taxable activities, the sales of taxable goods and services shall be calculated separately from the sales of taxable activities, and the registration standards for general VAT taxpayers shall be applied respectively.
Units and individual industrial and commercial households that sell goods, provide processing, repair and replacement services and taxable activities, and whose annual taxable sales exceed the standards set by the Ministry of Finance and State Taxation Administration of The People's Republic of China and do not often sell goods, provide processing, repair and replacement services and taxable activities may choose to pay taxes according to small-scale taxpayers.
Article 3 of the Announcement of State Taxation Administration of The People's Republic of China on Adjusting the Management of General VAT Taxpayers (State Taxation Administration of The People's Republic of China Announcement No.2015 18) stipulates that if the taxpayer's annual taxable sales exceed the standards set by the Ministry of Finance and State Taxation Administration of The People's Republic of China (hereinafter referred to as the prescribed standards) and meet the relevant policies and regulations, he shall submit a written explanation to the competent tax authorities (Annex 2).
Article 3 of the Administrative Measures for the Qualification Recognition of General VAT Taxpayers in State Taxation Administration of The People's Republic of China (State Taxation Administration of The People's Republic of China Order No.20 20 10/0 No.22) stipulates that VAT taxpayers (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, except as stipulated in Article 5 of these Measures, shall apply to the competent tax authorities for the qualification recognition of general taxpayers.
Article 5 stipulates that the following taxpayers shall not apply for the qualification of general taxpayers:
(1) Individuals other than individual industrial and commercial households;
(2) Selecting non-enterprise units that pay taxes according to small-scale taxpayers;
(3) Choose enterprises that pay taxes according to small-scale taxpayers and do not frequently engage in taxable activities.
According to the above provisions, if the annual taxable sales of non-enterprise units that pay taxes according to small-scale taxpayers exceed the standards of small-scale taxpayers stipulated by the Ministry of Finance and State Taxation Administration of The People's Republic of China, they may not apply for the qualification of general taxpayers. If you choose to pay taxes by small-scale taxpayers, you shall submit a written explanation to the competent tax authorities.