Fully digitalized e-invoices | Answers to common difficult questions about the Electronic Tax Bureau

1. How do tax handlers terminate the association relationship with taxpayers?

When tax handlers need to terminate the tax network trusted identity association relationship due to resignation, retirement, or other reasons, tax handlers may terminate it online by themselves or apply for termination through a tax service venue.

2.After a taxpayer completes deregistration, do the identity authentication information and operating permissions of the enterprise authorizer and authorized person need to be manually revoked in the electronic invoice service platform?

No need. The platform has a function to automatically mark invalid status. After an enterprise completes deregistration, the electronic invoice service platform automatically synchronizes the enterprise status information and automatically marks the identity authentication information and operating permissions of the enterprise authorizer and authorized persons as invalid.

3.Before issuing fully digitalized e-invoices, what other business do pilot taxpayers need to handle?

No. After pilot taxpayers complete real-name verification, they do not need to use dedicated tax control equipment, do not need to handle fully digitalized e-invoice type verification, and do not need to collect fully digitalized e-invoices. They can issue invoices using the Electronic Invoice Service Platform.

4.What invoicing software do pilot taxpayers need to use to issue fully digitalized e-invoices?

You can directly log in to the local "Electronic Tax Bureau" and automatically jump to the "Electronic Invoice Service Platform" to issue fully digitalized e-invoices for free, without using other specific invoicing software.

5. What is the process for pilot taxpayers to issue fully digitalized e-invoices?

Pilot taxpayers log in to the Electronic Tax Bureau and are automatically redirected to the "Electronic Invoice Service Platform." Click "I Want to Handle Taxes"—"Invoicing Business," select different invoice types through the invoicing module, enter the issuance content, and after verification by the electronic invoice service platform, an invoice number is automatically assigned and the corresponding fully digitalized e-invoice is generated according to the different business type.

6.I am a pilot taxpayer. Can I issue fully digitalized e-invoices to non-pilot regions?

The scope of recipients of fully digitalized e-invoices is gradually expanded nationwide according to pilot progress. For the specific scope, consult the competent tax authority.

7.Can natural persons apply for issuance of fully digitalized e-invoices on their behalf?

Yes. Individuals can log in to the electronic tax bureau to apply for issuance of blue-letter and red-letter fully digitalized e-invoices on their behalf, but the function for issuing fully digitalized e-invoices on behalf is currently piloted only in some provinces (cities). If the function cannot be found in the province's electronic tax bureau, it is necessary to patiently wait for the expansion process of issuing fully digitalized e-invoices on behalf or continue to apply for issuance of tax-controlled invoices on behalf.

8.Can pilot taxpayers temporarily save invoice information during the invoice issuance process on the electronic invoice service platform?

Yes. The electronic invoice service platform provides an invoice draft function. During invoice issuance, taxpayers can choose to save a draft if they need to temporarily save invoice information.

9. Under what circumstances can a red-letter fully digitalized e-invoice be issued?

Under general circumstances, when a pilot taxpayer has sales returns, incorrect invoicing, service suspension, sales discounts, etc., a red-letter fully digitalized e-invoice may be issued according to regulations. However, in the following circumstances, a red-letter fully digitalized e-invoice may not be issued:

(1) When the blue-letter invoice has been voided, fully red-letter reversed, determined as an abnormal deduction voucher, or locked (a red-letter confirmation form or information table has been initiated but no red-letter invoice has been issued, and the red-letter confirmation form or information table has not been revoked), a red-letter reversal is not allowed to be initiated;

(2) When the VAT purpose of the blue invoice is "pending tax refund", "tax refunded", "deducted (refund upon change)", "tax refund on behalf", or "no tax refund and no deduction", initiating a red-letter reversal is not allowed;

(3) Among the tax preference tags of the blue invoice, when the "Winter Olympics tax refund tag" is "Winter Olympics tax refund applied for", initiating a red-letter reversal is not allowed;

(4) When initiating a red-letter reversal, if the counterparty taxpayer is in a status such as "abnormal" or "deregistered" and cannot log in to the system to perform relevant operations, initiating a red-letter reversal is not allowed.

10. How should the reason for issuing a red-letter invoice be selected?

The reason for red-flush reversal should be determined by the taxpayer based on the actual business situation. Note that if the commodity and service code of the original blue invoice is only goods or labor, "service termination" cannot be selected as the red-flush reason; if the commodity and service code is only services, "sales return" cannot be selected as the red-flush reason; for mixed sales, the red-letter reason is not controlled.

11.If a fully digitalized e-invoice is issued incorrectly, can it be voided?

No. Once a fully digitalized e-invoice is issued, it cannot be voided. If situations such as incorrect invoicing occur, a red-letter fully digitalized e-invoice must be issued to offset it.

12.If a pilot taxpayer issues an invoice through the electronic invoice service platform, can the red-letter invoice issuance process be voided before the red-letter invoice is issued?

The specific rules are as follows:

(1) For a red-letter confirmation form initiated by the seller that requires no confirmation, the seller is allowed to withdraw it before a red-letter invoice is issued;

(2) After the initiator of the red-letter confirmation information submits the red-letter confirmation form, before the other party confirms it, modification is not allowed; the initiator may revoke the red-letter confirmation form;

(3) For a red-letter confirmation form initiated by either the buyer or seller and confirmed by the counterparty, the initiating party is not allowed to cancel the red-letter confirmation form; the confirming party may cancel the confirmation form after confirmation and before issuing the red-letter invoice;

(4) A red-letter confirmation form for which a red-letter invoice has already been issued may not be revoked;

(5) After initiating a red-letter confirmation form and before issuing a red-letter invoice, if the original blue-letter invoice is determined to be an abnormal voucher, the system will automatically void the red-letter reversal process.

13.After a pilot taxpayer issues a red-letter invoice through the electronic invoice service platform, does the already-issued invoice need to be recovered?

When a fully digitalized e-invoice issued by a pilot taxpayer through the electronic invoice service platform is reversed, there is no need to recover the reversed fully digitalized e-invoice or its paper printout; when a paper invoice issued through the electronic invoice service platform is reversed, the reversed paper invoice needs to be recovered.

Source: Beijing Pinggu Tax

Beijing Kailing Technology Co., Ltd.——an enterprise business-finance-tax digitalization solution service provider.

Kailing Technology provides solutions for sales management systems, procurement management systems, output invoicing systems, input invoice collection systems, imaging management systems, financial posting systems, electronic accounting archives, fully digitalized e-invoice and Leqi interfaces and other businesses according to enterprise needs, professionally and efficiently helping enterprises transform and upgrade their business-finance-tax digital management.

If you have any business-finance-tax digital transformation needs, welcome to contact us. Beijing Kailing Technology will serve you wholeheartedly.