China VAT Registration: Thresholds, Mandatory and Voluntary Rules, Timing, Corrections, and Compliance Consequences

• Taxpayers with annual taxable sales over RMB 5 million must register as general VAT taxpayers, with some sector-specific mandatory registration regardless of turnover.
• Voluntary registration is allowed for those below the threshold if accounting is sound, with retroactive VAT obligations.
• Annual taxable sales are calculated over any 12-month or four-quarter period, excluding occasional real estate or intangible asset transfers.
• Retroactive registration and corrections are required if threshold is breached, with specific deadlines and correction requirements.
• Failure to register on time leads to automatic reclassification and increased VAT obligations; supporting documentation must be retained.
• Transitional rules apply for those exceeding the threshold at the end of 2025, with new rules effective from 2026, including the abolition of the guidance period and new VAT refund/offset options.

Source: fiscal-requirements.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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