[Practical Guide] The instructions for filling out the VAT return have been adjusted! Learn in one article what was changed

Recently, the State Taxation Administration issued the "Announcement of the State Taxation Administration on Adjusting Matters Concerning VAT Tax Filing" (State Taxation Administration Announcement No. 2 of 2025), clarifying that starting from February 1, 2025, the filling instructions for the "VAT and Surcharge Tax Filing Form (Applicable to General Taxpayers)" and its attached materials, and the filling instructions for the "VAT and Surcharge Prepayment Form" and its attached materials, will be adjusted.

What are the adjustments to the instructions for filling out the VAT filing form? Let's take a look together↓

Added filling instructions for Line 28 "① Tax Prepaid in Installments" of the "VAT and Surcharge Tax Return (Applicable to General Taxpayers)."

On the basis that the filing standards remain unchanged, "the head office that calculates and pays VAT on a consolidated basis as stipulated for services, real estate, and intangible assets" was adjusted to "the head office that calculates and pays VAT on a consolidated basis as stipulated"; the filing instructions for prepaid taxes on sales of construction services, sales of real estate, and leasing of real estate were optimized.

Adjusted the filing instructions for the "Pre-levy rate %" column in rows 13a to 13c of the VAT and Surcharge Tax Return Supplementary Information (I) (Current Period Sales Details).

In the filling instructions for the relevant lines, first, "Lines 13a to 13c 'II. Simplified Tax Calculation Method' 'Pre-levy rate %': reflecting taxpayers of the business tax-to-VAT reform, branches that calculate and pay VAT on a consolidated basis for services, real estate, and intangible assets as required" is adjusted to "Lines 13a to 13c 'II. Simplified Tax Calculation Method' 'Pre-levy rate %': reflecting branches that calculate and pay VAT on a consolidated basis as required"; second, "Line 13a to 13c, Column 14, taxpayers fill in truthfully after calculating according to the formula 'VAT payable by pre-levy = VAT taxable sales amount subject to pre-levy × pre-levy rate'" is adjusted to "Line 13a, Column 14, taxpayers fill in truthfully as required; Lines 13b to 13c, Column 14, taxpayers fill in truthfully after calculating according to the formula 'VAT payable by pre-levy = VAT taxable sales amount subject to pre-levy × pre-levy rate'".

Deleted the expressions "non-local" and "cross-county (city)" for construction services.

The Notice of the Ministry of Finance and the State Taxation Administration on Policies for the Pilot Replacement of Business Tax with VAT in Construction Services and Others (Cai Shui [2017] No. 58) provides that "for projects that, under current provisions, should prepay VAT at the place where the construction service occurs, the taxpayer shall prepay VAT at the place where the construction service occurs upon receiving the advance payment. For projects that, under current provisions, do not need to prepay VAT at the place where the construction service occurs, the taxpayer shall prepay VAT at the place of its institution upon receiving the advance payment." Therefore, the relevant expressions "other place" and "cross-county (city)" for construction services in the VAT and Surcharge Prepayment Form are deleted, and the adjusted "(1) Taxpayers (excluding other individuals) providing construction services" includes two situations: taxpayers providing construction services across counties (cities, districts) (excluding those across counties and cities within the same prefecture-level administrative region) and taxpayers receiving advance payments for providing construction services.

Source: State Taxation Administration

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