Small-scale taxpayers refer to value-added tax taxpayers whose annual sales are lower than the prescribed standards, their accounting is not perfect, and they can't submit relevant tax information as required.

The so-called imperfect accounting means that the taxable amount of output tax, input tax and value-added tax cannot be calculated correctly.

Small-scale taxpayers who have sound accounting and can provide accurate tax payment information may apply to the competent tax authorities for general taxpayer qualification and are not regarded as small-scale taxpayers.

Unless otherwise stipulated in State Taxation Administration of The People's Republic of China, once a taxpayer is recognized as a general taxpayer, it shall not be converted into a small-scale taxpayer. Value-added tax is simply levied on small-scale taxpayers, and the tax rate applicable to small-scale taxpayers is called the levy rate.

Considering that small-scale taxpayers have small business scale and imperfect accounting, it is difficult to calculate the tax amount according to the value-added tax rate and use the special value-added tax to deduct the input tax amount, so it is suggested to implement the method of calculating the tax amount according to the sales volume and the collection rate. Since July 20 14, 1 year, the rate of small-scale taxpayers' VAT collection has been adjusted to 3%.