Legal basis: Article 28 of the Detailed Rules for the Implementation of the Provisional Regulations of the People's Republic of China on Value-added Tax.
The standards for small-scale taxpayers as mentioned in Article 11 of the Regulations are: (1) taxpayers engaged in the production of goods or providing taxable services, and taxpayers whose main business is the production of goods or providing taxable services and who concurrently engage in the wholesale or retail of goods, and whose annual VAT sales (hereinafter referred to as taxable sales) are below 500,000 yuan (inclusive, the same below); (2) For taxpayers other than those specified in Item (1) of Paragraph 1 of this Article, the annual taxable income is less than 800,000 yuan. The term "mainly engaged in the production of goods or providing taxable services" as mentioned in the first paragraph of this article means that the annual sales of taxpayers producing goods or providing taxable services account for more than 50% of the annual taxable sales.