VAT Application

Foreign-invested enterprise refers to an enterprise established in China within the territory of the People’s Republic of China, which is jointly invested by Chinese investors and foreign investors or invested only by foreign investors. The so-called Chinese investors include Chinese companies, companies or other economic organizations, including foreign companies, companies, and other economic organizations or individuals.

Initially, the application of tax invoices for transactions, the corporate tax invoices can be divided into general taxpayers and small-scale taxpayers. After the company is registered, the default is a small-scale taxpayer. The general taxpayer needs to apply separately. The mainland company with the general taxpayer qualification certificate can open a 13% VAT invoice, but the registration address needs to be carefully selected.

Ⅰ. The general taxpayer certification standard

Enterprises that have been in business for one year should meet the following conditions:

Annual VAT sales meet or exceed the following standards :

1.  Industrial enterprise annual taxable sales of more than 500,000 dollars ;

2.  The annual taxable sales of commercial enterprises are over 800,000 dollars.

For newly-established commercial enterprises directly recognized as general taxpayers, the competent tax authorities shall, during the follow-up management period, focus on monitoring whether such enterprises can apply for VAT tax returns within the statutory time limit, whether to falsely open or accept false opening VAT deduction certificates. Waiting for the situation.

A newly-established small-scale commercial enterprise directly recognized as a general taxpayer shall be transferred to the general taxpayer of the counseling period from the first day of the discovery of the problem within one month of the six-month follow-up management period, according to the State Administration of Taxation. The provisions of the “Emergency Notice on Strengthening the Management of Value-Added Tax Collection of Newly-run Commercial Enterprises” and its supplementary notice shall be administered during the counseling period.

Ⅱ. General taxpayer application information

The general taxpayer shall be the general taxpayer during the counseling period from the date of approval. The counseling period shall be 6 months. After the counseling period is over, the competent tax authorities may, after examination and approval, transfer to a formal general taxpayer and be managed by the normal general taxpayer.

The maximum invoicing amount of the special VAT invoice used during the counseling period is 1,000 dollars, and each purchase shall not exceed 25 copies.

If the number of business-to-order purchases cannot meet the needs of the current month, it can be re-purchased, but each additional purchase must be based on 4% of the sales of the special invoices that were previously purchased and issued.

For newly registered companies, some new enterprises that have large investment scales, large sales estimates, strong financial strength, and separate financial accounting departments may be temporarily recognized as general taxpayers. After the taxpayer has opened the business for one year, it shall apply for the formal formalization of the general taxpayer according to the actual annual taxable sales.

Ⅲ. General taxpayer application conditions

The company employees must have more than five people to purchase social security (one of them must be an accountant with an accounting certificate);

There is a fixed business place, the registered address area needs more than 70 square meters, and a lease contract with a certain period of time is signed.

The bank has certain liquidity, and the amount of liquidity is determined according to the registered capital.

More than 800,000 sales contracts, purchase sales contracts.

Other special requirements (different according to each district).

(1) Taxpayers engaged in the production or provision of value-added taxable services shall have an annual VAT sales of more than 500,000 during the year;

(2) Taxpayers engaged in the wholesale or retail of goods shall have an annual VAT sales of more than 800,000 in a Western calendar year;

(3) Taxpayers who mainly produce goods or provide value-added taxable services, and concurrently engage in the wholesale or retail of goods, shall have an annual VAT sales of more than 500,000 yuan in a Western calendar year;

(4) If the accounting is sound and the input and output tax can be accurately provided, it can also be recognized as a general taxpayer. VAT general taxpayers have the corresponding powers. If they have the right to purchase general taxpayers’ goods or taxable services, they can obtain special VAT invoices from the sellers, and have the right to purchase and use special VAT invoices as required. The deduction of the input tax amount is obtained as required.

Inter Area has many years of experience in industrial and commercial/accounting tax services in mainland China. There is a special person to handle the application for general taxpayers, and Inter Area International is also committed to improving accounting service standardization and accounting information communication SOP, and improving resource efficiency allocation to reduce unnecessary time costs. Loss, thereby eliminating the gaps and obstacles in cross-border tax information, and working to improve the efficiency and value of services, providing customers with immediate and accurate local tax financial information and presenting practical solutions to meet the needs of investors and other financial information users. need.

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