The inquiry concerns a small-scale taxpayer that files taxes on a quarterly basis and, during the first quarter of 2026, delivered construction services in a different region without including tax in the invoice. The sales amounted to CNY 300,000 and the taxpayer asks whether value‑added tax (VAT) must be prepaid at the location where the services are performed. Under the VAT legislation, services rendered in a different administrative area are generally subject to VAT at the place where the service is actually provided, and the taxable amount is calculated based on the consideration received. For small‑scale taxpayers who are exempt from VAT on sales of goods but not on services, the standard VAT rate of 3% applies to construction and installation services. Consequently, the taxpayer is required to register the service location with the local tax authority, collect VAT from the customer, and remit the tax to the tax bureau of the service location. If the service is deemed to be provided outside the taxpayer’s tax registration area, the tax may need to be prepaid to avoid penalties. Additionally, the taxpayer should retain all contracts, invoices, and payment records to substantiate the VAT liability and to claim any applicable input tax credits. The taxpayer may also need to file a supplemental VAT return for the period in which the service was rendered to ensure compliance with filing deadlines and to avoid interest charges.