VAT relief nationwide for small business hit by outbreak

Pre-paid levy cut from 3% to 1% nationwide, and Hubei exempt until June

VAT relief for small business
Staff wearing protective clothing transfer aid at the Wuhan No.4 Hospital in central Hubei province in late January. Businesses have been exempted from VAT until June, finance chiefs have said. Photo: AFP / China OUT

(ATF)  – The Ministry of Finance and the State Administration of Taxation has announced that due to pressure caused by the Covid-19 epidemic, they will reduce Value-Added  Tax (VAT) demands on small businesses.

Nationwide, VAT has been reduced from a prepaid 3% to 1%.

And business in Hubei, the province hit hardest by the coronavirus epidemic, have been given exemption from VAT for several months while people and businesses recover from the health crisis.

The new ruling will last from March 1 to May 31 for small-scale VAT taxpayers, the ministry said.