China updates VAT compliance plans
- Apr 22, 2021
China has announced a range of measures to help simplify its VAT regime, and support small businesses during the COVID crisis. The Ministry of Finance and the State Taxation Administration are expected to issue detailed regulations or circulars to implement these tax changes.
The changes include:
- Small taxpayers will continue to enjoy the cash-based VAT reporting regime;
- The VAT registration threshold will be raised to CNY150,000 per annum to CNY100,000; and
- Refunding input VAT newly accrued by an advanced manufacturing enterprise on a monthly basis.
China is also looking to complete its special invoice electronic reporting rollout in the Spring of this year (2021).