1. Individuals provide services abroad, or have cross-border taxable activites whereas can enjoy tax exemption as stipulated in tax law
   
   According to Measures for the Pilot Implementation of Replacing Business Tax with VAT, enterprises and individuals who sell services, intangible assets or real estates in China are VAT taxpayers.
   
   According to Administrative Measures (Trial) on VAT Exemption for Cross-border Taxable Activities by SAT, enterprises and individuals who have cross-border taxable activities in China can be exempted from VAT in light of relevant provisions.
   
   Therefore, individuals do not need to pay VAT for services provided abroad or have cross-border taxable activities that can enjoy tax exemption according to tax law.
   
   
2. Overseas individuals provide services entirely abroad
   
   According to Measures for the Pilot Implementation of Replacing Business Tax with VAT, overseas enterprises or individuals do not need to pay VAT when provide services that take place entirely abroad to domestic enterprises or individuals, as these activities do not qualifies as providing services or selling intangible assets domestically.
   
   
3. Applications of non-resident individuals to tax treaties
   
   Under tax agreement (arrangement) between China and its contracting parties, non-resident individuals can be exempted from VAT for providing services. Therefore, non-resident individuals can enjoy VAT exemption when tax agreement(arrangement) is applicable to their proposals.
   
   
4. Individuals transfer technology while provide technical advice and services
   
   According to Notice on Pilot Project of Comprehensively Replacing Business Tax with VAT issued by the Finance Ministry and the SAT,  taxpayers shall be exempted from VAT for technology transfer, technology development and relevant consultation & technical services.
   
   Pilot taxpayers shall submit technical contracts to local science and technology department for verification, the certification shall be provided together with the technical contracts to competent tax bureau in preparation of investigation.
   
   
5. The taxable income is lower than VAT threshold
   
   If temporary tax registration is not completed, VAT threshold shall be calculated on a case-by-case basis, individuals shall be exempted from VAT for taxable income less than RMB500; For individuals who completed temporary tax registration, they can enjoy tax preferential policy, which the monthly income is VAT exemptable for the part less than RMB100,000.

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