China Temporarily Reduces VAT Rate for Small-Scale VAT-Payers

published on 5 March 2020 | reading time approx. 1 minute

 
China has taken specific measures for small-scale VAT payers to support them in containing the difficult economic situation caused by the coronavirus.

For small-scale VAT payers in Hubei Province, VAT is exempted, while for those outside in other areas of China, the VAT rate is reduced to 1 per cent. The policy will be valid from March to May 2020.

According to the current regulations, enterprises with annual sales revenue of lower than RMB 5 million can be recognised as small-scale VAT taxpayers; the VAT rate applicable is 3 per cent.