Announcement on the Value-added Tax Reduction and Exemption Policy for Small-scale VAT Taxpayers
Announcement of the Ministry of Finance and the State Taxation Administration [2023] No.19
August 1, 2023
To further support the development of micro and small enterprises and individual businesses, the extension of the value-added tax (VAT) reduction and exemption policy is announced as follows.
I. Small-scale VAT taxpayers with monthly sales amount of below CNY100,000 (inclusive) shall be exempt from VAT.
II. Small-scale VAT taxpayers whose taxable sales revenue shall be subject to the 3% levy rate shall be eligible for a reduced rate of 1%; for items subject to prepayment of VAT at the rate of 3%, the prepayment will be made at a reduced rate of 1%.
The Announcement shall be in effect until December 31, 2027.
The Announcement is hereby given.
