VAT Exemption for Small Scale Taxpayers
On 30th December 2017 the State Administration of Taxation (SAT) issued a new regulation allowing small-scale taxpayers to be exempt from VAT.
Circular Cai Shui  No. 52 stipulates that small-scale VAT tax payers must account separately for the sales of goods or processing, repairing services from the sales of service or sales of intangible assets.
Tax payers with monthly sales of goods, services, intangible assets, processing or repair services of less than RMB 30,000 will be eligible for VAT exemption from 1st February 2018 to 31st December 2020. The same applies to taxpayers with quarterly sales lower than RMB 90,000.