FAQ on fully digitalized e-invoice red-letter invoices

Business rules

1.When the invoice recipient has not confirmed the use or booked it, the issuer initiates the Red-Letter Information Confirmation Form through the electronic invoice service platform and then issues a full red-letter digitalized electronic invoice without the recipient's confirmation;

2.When the invoice recipient has confirmed the use, either the purchaser or seller may initiate the Red-Letter Information Confirmation Form on the electronic invoice service platform (when the recipient is a non-pilot taxpayer, initiate and confirm on the VAT Invoice Comprehensive Service Platform); after confirmation by the other party, a full or partial red-letter digitalized electronic invoice may be issued.

Situations where issuance is not allowed.

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 a blue-letter invoice has been voided, fully red-offset, determined as an abnormal tax deduction voucher, or locked (blue-letter invoice, red-letter confirmation form or information table not revoked), initiating a red offset is not allowed;

2.When the VAT use of a blue-letter invoice is "pending tax refund", "tax refunded", "deducted (changed to refund)", "tax refund on behalf", or "no tax refund and no deduction", initiating a red offset is not allowed;

3.Among the tax preference labels of a blue-letter invoice, when the Winter Olympics tax refund label is "Winter Olympics tax refund applied", initiating a red offset is not allowed;

4.When initiating red-letter reversal, if the counterparty taxpayer is in a status such as "abnormal" or "deregistered" or "abnormal deregistration", red-letter reversal is not allowed.。

The invoice quota after red-letter reversal in the current month has not been restored

For red-letter reversals in the current month, red-letter invoices issued by way of sales allowance will not restore the quota.

According to business rules, if a blue-letter fully digitalized e-invoice is issued and a red-letter fully digitalized e-invoice is also issued in the same month, the electronic invoice service platform will simultaneously increase the remaining available quota for that month; if a red-letter fully digitalized e-invoice is issued across months, the electronic invoice platform will not increase the remaining available quota for that month. For sales allowances, the available invoice quota will also not be increased。

Note:Please check whether the red-letter reversal was initiated as a sales allowance; if not, please contact the competent tax authority for handling.

Red-letter information confirmation form

Q:After issuing a fully digitalized e-invoice, an error was found, and a red-letter information confirmation form was filled in. The purchaser has not confirmed it. After more than 72 hours, the red-letter invoice information confirmation form was entered again, and the system prompted "This invoice has an in-progress red-letter notice" and blocked it.

Answer:For a red-letter information confirmation form, only when counterparty confirmation is required and the buyer does not confirm after more than 72 hours will it be automatically voided. For red-letter information confirmation forms that do not require counterparty confirmation, they will not be automatically voided even after more than 72 hours.

Among them, the red-letter information confirmation form is divided into two situations: initiated unilaterally without confirmation, and initiated after confirmation by both the seller and purchaser.

01 When the invoice recipient has not performed selection confirmation or booking for the received invoice, or has revoked the selection confirmation or booking, the seller can directly initiate a red-letter information confirmation form without the other party's confirmation.

02 Except for the above situations where the invoicing party unilaterally initiates the issuance of a red-letter invoice, all other red-letter invoice issuance processes should be initiated after confirmation by both the seller and the buyer.

Note:

1. If the other party does not confirm within 72 hours after initiating the red-letter invoice issuance process, the process will be automatically voided and the process should be re-initiated.

2. For the reason for issuing an invoice, you can choose among four options: "incorrect invoicing," "sales return," "service suspension," and "sales discount." When the reason for red-letter reversal is incorrect invoicing, only full-amount red-letter reversal can be selected!

3. Purchase invoices allow the invoicing party to directly issue a red-letter confirmation form without confirmation from the other party.

Source: internet

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.