All companies have transactions in China have to issue invoices , and invoices are divides into Small Scale Tax Payer and General Tax Payer. After company is registered, Tax Bureau will automatically recognise company is Small Scale Tax Payer. General Tax Payer shall be applied after company registered well, and the company whom holds General Tax Payer rights can issue VAT17% ,the essential condition of General Tax Payer is about the registered address. 

Standard of Qualified General Tax Payer

1. The company shall be satisfied the following conditions after operation over 1 year: 

Annual Sales Amounts up to below standards: 

① Industrial companies have up to RMB500,000

② Commercial companies have up to RMB800,000

2. Regarding to those companies whom have been recognised General Tax Payer directly ,the Tax bureau shall eyeing on these companies whether they are submit tax declaration in the certain period 

3. Regarding to those small trading companies whom have been recognised General Tax Payer directly ,within 6 months inspecting period, if these companies have situation of above have to be changed to training general tax payer period acceding to the VAT Law 

Release : 

1. Normally , Once company is approved to being a General Tax Payer, there is a training term which takes 6 months, afterwards, the company officially be a General Tax Payer

2. During training term, the maximum amount of invoice which the newly General Tax Payer can issue is Thousands Amount. And they can only apply for 25 pages of invoice 

3. If the company finished all invoices in a month, they can purchase more, however, the company has to pre pay 4% of VAT

4. Subject to the New incorporated company, those are big investment, big sales amount or good financial , could be pre approved as General Tax Payer. After 1 year operation, they can apply for be a General Tax Payer accordingly 

Standards of Applying General Tax Payer: 

1. Minimum 5 employers were purchased Social Insurance ( one of them has to be accountant who has Accounting Certification )

2. Company’s office is up to 70 square meters with Lease Agreement 

3. Company should have balance in the bank account ; the balance depends on the registered capital

4. Sales Agreement (the amount up to 800,000), Importing Agreement 

5. Other Requirements

(1) The Annual sales amount of Manufacturing tax payer has up to RMB500,000

(2) The Annual sales amount of tax payer of Wholesale or retail has up to RMB800,000 

(3) The Annual sales amount of the combination of manufacturing,wholesale and retail have up to RMB500,000

(4) In some cases, generally can be accepted as a General Tax Payer ,when the company has full accounting system, purchasing invoice and distributing invoice.

General Tax Payer also has right to ask supplier issues VAT when purchasing , apply for deducting afterwards.