SAT Notice regarding the exemption of Value-added Tax (VAT) and Business Tax of Small and Micro-sized Companies

State Administration of Taxation (SAT) released “SAT Notice regarding the exemption of Value-added Tax (VAT) and Business Tax of Small and Micro-sized Companies” stipulating the following preferential VAT and BT policies:
  1. Small-scale VAT taxpayers who derive monthly turnover no more than RMB30,000 for VAT taxable items, shall be exempt from VAT. BT taxpayers, who derive monthly turnover no more than RMB30,000 for BT taxable items, shall be exempt from BT. If taxpayers file VAT or BT on a quarterly basis and the quarterly turnover is no more than RMB 90,000, they shall be exempt from VAT or BT.
  2. Small-scale VAT taxpayers, who concurrently engage in the provision of BT taxable activities, shall separately account for the VAT taxable turnover and BT taxable turnover. If the monthly VAT taxable turnover is no more than RMB 30,000 (quarterly RMB 90,000), it shall be exempt from VAT, and if the monthly BT taxable turnover is no more than RMB 30,000 (quarterly RMB 90,000), it shall be exempt from BT.

The above notice shall be effective from 1 October 2014.