General taxpayers are not allowed to issue general invoices with 3% tax rate. General taxpayers can only issue ordinary VAT invoices or special VAT invoices according to their own situation. The tax rate is usually 17% or 13%, etc., and cannot be issued at the rate of small-scale taxpayers.
VAT taxpayers whose annual taxable sales exceed the standards for small-scale taxpayers set by the Ministry of Finance and the State Administration of Taxation should apply to the competent tax authorities for general taxpayer qualification certification.
Taxpayers whose annual taxable sales do not exceed the standards for small-scale taxpayers stipulated by the Ministry of Finance and the State Administration of Taxation, as well as those who are newly opened, may apply to the competent tax authorities for the qualification recognition of small-scale taxpayers.
The following conditions must be met: having a fixed place of production and operation; being able to set up account books in accordance with the provisions of the unified accounting system of the State, accounting on the basis of legal and valid vouchers, and being able to provide accurate tax information.
Legal Basis
The Provisional Regulations of the People's Republic of China on Value-Added Tax (VAT)
Article 2 VAT Rate:
(1) A taxpayer who sells goods, services, leasing services of tangible movable assets, or imports goods shall be taxed at a rate of 17%, except as provided for otherwise in items 2, 4 and 5 of this Article.
(ii) The tax rate for a taxpayer's sale of transportation, postal services, basic telecommunications, construction and real estate leasing services, sale of real estate, transfer of land use rights, and the sale or import of the following goods shall be 11%:
1. Agricultural products such as grains, edible vegetable oils, and edible salts;
2. Tap water, heating, cold air, hot water, coal gas, liquefied petroleum gas, Natural gas, dimethyl ether, biogas, coal products for residential use;
3. Books, newspapers, magazines, audio-visual products, electronic publications;
4. Feedstuffs, chemical fertilizers, pesticides, agricultural machinery, agricultural films;
5. Other goods prescribed by the State Council.
(3) The tax rate for sales of services and intangible assets by taxpayers shall be 6%, except as otherwise provided in the first, second and fifth subparagraphs of this Article.
(d) Taxpayers exporting goods shall be subject to a tax rate of zero percent; however, unless otherwise provided by the State Council.
(v) The tax rate for cross-border sales of services and intangible assets within the scope of the State Council's regulations by domestic units and individuals is zero.
The adjustment of the tax rate shall be decided by the State Council. Article 4 Except for the provisions of Article 11 of these Regulations, the taxable amount of a taxpayer's sales of goods, services, services, intangible assets and real estate (hereinafter collectively referred to as taxable sales) shall be the balance of the current output tax offset against the current input tax. The formula for calculating the taxable amount:
Taxable amount = current output tax amount - current input tax amount.
When the current output tax is less than the current input tax is not enough to offset, the shortfall can be carried forward to the next period to continue to offset.