This Announcement aims to implement the requirements of the VAT Law of the People's Republic of China and its corresponding implementation regulations, and further clarify the administrative matters concerning the registration of VAT taxpayers (the “general taxpayers”). Its main contents are as follows:

• Registration Criteria and Scope

1. 1）A VAT taxpayer (the “taxpayer”) whose annual taxable sales exceed the threshold for small-scale taxpayers (the “exceeding the threshold”) and who does not fall within either of the two exceptions—(i) natural persons, or (ii) non-enterprise entities that do not engage in taxable transactions frequently and whose principal business is not within the scope of taxable transactions choose to pay taxes as a small-scale taxpayer—shall apply for registration as a general taxpayer.
2. 2）A taxpayer whose annual taxable sales do not exceed the threshold and who has a sound accounting system may apply for registration as a general taxpayer.

• Calculation of Sales Amount

1. 1）The taxable sales are calculated on a rolling basis over any consecutive twelve-month or four-quarter period, excluding occasional sales of intangible assets or immovable property.
2. 2）Sales adjustments resulting from self-initiated supplementation or correction, risk control review, or tax audit and assessment are allocated to the tax period in which the tax liability arose, instead of being attributed to the period in which the adjustment is made.

• Time Limit for Registration Formalities

1. 1）If exceeding the threshold is caused by a sales adjustment, the formalities shall be completed within 10 working days from the date of the adjustment.
2. 2）For exceeding the threshold under other circumstances, the formalities shall be completed within the declaration period of the month following the month in which the threshold is exceeded.
3. 3）If the relevant formalities are not completed within the prescribed time limit, the taxpayer shall be managed as a general taxpayer starting from the 5th working day after the expiry of the prescribed time limit.

• Effective Date and Filing Alignment

1. 1）Effective rules: For taxpayers that exceed the threshold, general-taxpayer status takes effect on the first day of the period in which the threshold is exceeded, replacing the former rule that the status took effect on the first day of the month of (or after) registration. For taxpayers that register voluntarily without exceeding the threshold, the status takes effect on the first day of the period in which the registration formalities are completed.
2. 2）Transitional provisions: For taxpayers whose sales exceeded the threshold during the fourth quarter of 2025 or the December 2025 filing period, or who applied the VAT rate but were ineligible to credit input VAT before 1 January 2026, the effective date shall be January 1, 2026. Where adjustments to sales for 2025 or earlier periods cause the threshold to be exceeded, the effective date shall be no earlier than January 1, 2026.
3. 3）Where a taxpayer has already filed VAT returns as small-scale taxpayer on or after the effective date of general taxpayer status, the taxpayer shall correct the VAT filings on a period-by-period basis in accordance with the rules applicable to general taxpayers. And VAT deduction vouchers obtained on or after the effective date of general taxpayer status are allowed to be confirmed with the use as input credit on a period-by-period basis.

• Abolition of the Guidance-Period Management: The guidance-period management for general taxpayers is abolished with effect from January 1, 2026. Any balance of prepaid VAT arising from previous applications for additional special VAT invoices may be offset against future VAT payable or refunded.