Good news to those small and micro enterprises and individually-owned business!

In order to further support the development of small and micro enterprises and individual industrial and commercial households, the VAT reduction and exemption policy for small-scale taxpayers will be extended as follows:

1. Small-scale VAT taxpayers with monthly sales of less than 100,000 yuan (including the amount) are exempt from VAT.
2. Small-scale taxpayers who are subject to the taxable sales income of 3%, are reduced to 1% VAT rate; The pre-payment of VAT items applicable to the 3% pre-payment rate shall be reduced to 1% pre-payment rate.
3. This Announcement shall be effective until December 31, 2027.

General Administration of Taxation, Ministry of Finance

General Administration of Taxation, Ministry of Finance, Announcement No. 19, 2023

August 1, 2023