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Q：
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How to determine if my company is a small-scale taxpayer?
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A：
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VAT small-scale taxpayer usually refers to those whose annual taxable sales income does not exceed RMB5,000,000. Considering that taxpayer with annual taxable sales income less than RMB5,000,000 could also apply for the qualification of general taxpayer, it is advisable to login the website of Beijing Taxation Bureau to check the taxpayer’s status in case you are not sure if the company is a small-scale taxpayer.
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Q：
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My company is a small-scale taxpayer in Beijing, what’s the VAT rate during COVID-19 epidemic?
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A:
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Based on the State Tax Administration announcement [2020] No. 5, ‘Announcement on Tax Collection Administration of Supporting the Resumption of Individual Industrial and Commercial Households’, VAT small-scale taxpayer in places outside Hubei shall pay VAT at a reduced rate of 1%.
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Q：
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What is the date of implementation of this preferential policy?
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A：
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It is implemented from March 1, 2020.
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Q：
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At what rate my company should issue the VAT invoice?
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A：
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When a VAT small-scale taxpayer obtains taxable income, if the tax obligation occurred before end of February 2020, 3% is applicable; if the tax obligation occurs between March 1, 2020 to May 31, 2020, 1% should be adopted.
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Q：
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How to adjust the tax control system?
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A：
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Tax control system should be updated to the latest version, which is V2.0.35 200228.
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Q：
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Can we issue the special VAT invoice at 1%?
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A：
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Yes, either a small-scale taxpayer who is authorized to issue special VAT invoice by itself using tax control disc, or who issues the special VAT invoice via the State Tax Administration e-Tax system, can choose 3% or 1% based on the timing of the tax obligation occurrence.
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Q：
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During the period between March 1, 2020 and May 31, 2020, can a small-scale taxpayer enjoy the preferential policy of VAT exemption towards small and micro enterprises whose quarterly income does not exceed RMB300,000 as well?
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A：
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Up to now, ‘State Tax Administration Announcement on Tax Collection Matter Regarding the VAT Exemption Towards Small-scale Taxpayer’ (State Tax Administration Announcement 2019 No. 4) is valid for full text, i.e. the small-scale taxpayer can enjoy the preferential policy of VAT exemption towards small and micro enterprises whose quarterly income does not exceed RMB300,000 at the same time.
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FAQ
