Definition of Small-scale VAT Taxpayer:
1. Taxpayers with annual VAT taxable sales less than 5 million yuan (including)
2. Other individuals whose VAT taxable sales exceed the threshold of small-scale taxpayers are deemed as small-scale taxpayers
3. Non-enterprise entities, enterprises and individual businesses who do not often conduct taxable activities and the annual  VAT taxable sales are greater than 5 million yuan are treated as small-scale taxpayers

Tax period for VAT is 1 days, 3 days, 5 days, 10 days, 15 days, 1 months or 1 quarters

Import goods can only be entrusted to the third party, such as: import and export company, to import goods and pay the import value-added tax that cannot be deducted agaist of  VAT output. It should be included in the  purchase cost of goods

Tax invoice management : Taxpayers are not allowed to issue special VAT invoices unless otherwise stated

VAT input: Since VAT input of small-scale VAT payers cannot be deducted, there are no VAT input when purchased the goods.

VAT output: Small-scale taxpayer generally is permitted to issue ordinary invoice, who cannot issue VAT special invoice. If its customers required , 3% or 5% VAT special invoice can be issued via the competent tax authority. But the industry of Accommodation, attestation & consultation and construction are allowed to issue the 3% VAT invoices via their own VAT-issued system,, except selling their real estate.

VAT payable: Pay 3% or 5% VAT agaist sales revenue to the Competent Tax Authority

VAT Returns procedure: Fill in the VAT application form and submit it to the Competent Tax Authority