The State Administration of Taxation ("SAT") has released the Announcement on Issues concerning the Adjustment to the Declaration of Value-added Tax (the "Announcement"), with effect as of November 1, 2014.

The Announcement has made adjustments and refinements to the Value-added Tax Declaration Form (the "Form") used by small-scale taxpayers for their value-added tax (VAT) declaration as follows: the sixth column "Tax-exempt Sales" on the Form has been refined to include three new items, "Tax-exempt Sales of Small and Micro Enterprises", "Sales Not Reaching the VAT Collection Threshold" and "Other Tax-exempt Sales", which are supposed to be filled in by taxpayers according to the tax exemption policies they are entitled to. Under the column for "Tax Calculation", there are new sub-columns for "Amount of Tax Exemption in the Current Period", "Amount of Tax Exemption for Small and Micro Enterprises" and "Amount of Tax Exemption for Not Reaching the VAT Collection Threshold", which are supposed to be filled in by taxpayers after their calculation thereof according to their tax-exempt sales in the current period and the applicable tax rate.

(Source: www.chinatax.gov.cn)