What are the eligibility criteria that can a taxpayer apply for general taxpayer qualification. What are the taxpayers should not deal with for the general taxpayer qualification?
"Provisional Regulations of the PRC VAT" Article 13: Small-scale taxpayers with sound accounting can provide accurate tax information. It can apply to the competent tax authority qualification.
"VAT General Taxpayer Qualification Management Approach" (State Administration of Taxation Order No. 22) Article No. 3 to 5 states as follows:-
- 1. For the annual taxable sales amount which is more than the one as defined under the “Ministry of Finance, State Administration of Taxation” for the small-scale VAT taxpayers standards, exception to the provisions of Article 5 of this approach, it should apply to the tax authorities for the general taxpayer qualification. Annual taxable sales refers to the taxpayer, during a period of less than 12 months, its operations or cumulative sales chargeable to VAT, including duty-free sales.
- 2. For the annual taxable sales amount, it does not exceed the amount defined under the “Ministry of Finance, State Administration of Taxation” for the small-scale taxpayers standards and for those newly opened people, they can make application to the tax authorities for the general taxpayer qualification. Should the right to apply for and if they meet the following conditions, the tax authorities shall handle it:-
(1) Have a fixed place of business ;
(2) In accordance with the national unified accounting system that set up books, according to the legal, valid certificate for accounting and is able to provide accurate correct tax information.
- 3. The following taxpayers are not satisfied for the general taxpayer qualification:-
( 1 ) Those other than the individual business people ;
( 2 ) Those select as small-scale taxpayer's non-enterprise units ;
( 3 ) Those select as small-scale taxpayers which have infrequent taxable activities .