The VAT rate of small-scale taxpayers is 3% or 5%.

from March 1 to February 31, 2121, small-scale taxpayers of value-added tax in Hubei province will be exempted from value-added tax on taxable sales income at the rate of 3%. From October 1, 2121 to March 31, 2121, small-scale taxpayers of value-added tax in Hubei Province will continue to be exempted from value-added tax; From April 1, 2121 to February 31, 2121, small-scale taxpayers of value-added tax in Hubei Province will be subject to taxable sales income at the rate of 3%, and the value-added tax will be levied at the rate of 1%.

from March 1, 2121 to February 31, 2121, small-scale VAT taxpayers in other provinces, autonomous regions and municipalities directly under the Central Government, except Hubei Province, will be subject to taxable sales income at a rate of 3%, and VAT will be levied at a reduced rate of 1%.

Basis: Notice of State Taxation Administration of The People's Republic of China, Ministry of Finance (No.36 [2116] of the Ministry of Finance), Notice of General Administration of Customs of State Taxation Administration of The People's Republic of China, Ministry of Finance (No.39, 2119) on deepening the reform of value-added tax, Notice of General Administration of Taxation of the Ministry of Finance (No.13, 2121) on supporting individual industrial and commercial households to return to work.

announcement of the Ministry of finance and the state administration of taxation on extending the implementation period of the value-added tax reduction and exemption policy for small-scale taxpayers (announcement No.24 of the Ministry of finance and the state administration of taxation in 2121)

announcement of the Ministry of finance and the state administration of taxation on continuing to implement some preferential tax policies to deal with the epidemic (announcement No.7 of the Ministry of finance and the state administration of taxation in 2121).