Note! Starting in May, these 11 types of expense invoices can no longer be reimbursed!

Invoices are something we encounter every day. They are indispensable in taxpayers' buying and selling business, provision or acceptance of services, and other business activities. But do you really understand invoices?

1. These 3 common types of invoices are actually the most powerful evidence

Invoices are something all companies and individuals come into contact with, and are also one of the strongest pieces of evidence for consumers to protect their own rights. SoWhat types of invoices are there?

2. 4 situations in which only ordinary invoices can be issued and special invoices cannot

It should be noted that even for genuine transaction business,These 4 situations also cannot issue special VAT invoices, only general VAT invoices, remember:

(1) Sales of goods, provision of services, or occurrence of taxable acts to individual consumers.

(2) Where the sale of goods, provision of services, or occurrence of taxable acts is subject to VAT exemption provisions, unless otherwise provided by laws, regulations, and the State Taxation Administration.

(3) Some provisions applicable to the VAT simplified levy policy:

A general taxpayer's single plasma collection station that sells non-clinical human blood and chooses simplified tax calculation.

Where a taxpayer sells used goods and pays value-added tax at 3% reduced to 2% under the simplified method.

Where a taxpayer sells fixed assets it has used and pays value-added tax at 3% reduced to 2% under the simplified method.

Note: When selling used fixed assets, VAT may be paid at 3% reduced to 2%, or the reduction may be waived and VAT paid at 3%, and special invoices may be issued.

(4) Other circumstances stipulated by laws, regulations, and the State Taxation Administration.

3. Note! These 11 types of expense invoices can no longer be reimbursed!

Ordinary invoices with only a name, no tax number, or incomplete invoicing information can no longer be reimbursed!

So besides these, alsoWhich expense invoices can no longer be reimbursed?

(1) General VAT invoices without a taxpayer identification number cannot be reimbursed!

Since July 1, 2017, when the purchaser is an enterprise, it should provide the seller with its taxpayer identification number or unified social credit code when obtaining ordinary invoices. Invoices that do not comply with the regulations may not be used as tax vouchers.

(2) If the invoice does not match the actual business, such as issuing a false invoice without any purchase, it cannot be reimbursed!

(3) Expense invoices received with incomplete items in the invoice remarks column cannot be reimbursed!

(4) Invoices received with non-compliant invoice seals cannot be reimbursed! Such as incorrect seals (financial seal or official seal), blurred seals, or missing special invoice seal, etc. Cannot be reimbursed!

(5) Invoices with incorrect applicable tax rates cannot be reimbursed!

(6) Invoices for export goods for which a production enterprise handles tax refund on behalf must include remarks, otherwise they cannot be reimbursed!

(7) Taxi invoices bearing the old version of the invoice supervision seal cannot be reimbursed.

(8) Invoices without coded abbreviations cannot be reimbursed!

(9) Generic product names without specific details cannot be reimbursed!

Note: It is not allowed to fill in content inconsistent with the actual transaction according to the purchaser's request, issue false invoices, or reimburse them.

(10) If the invoice received has an attached list that was not issued and printed from the anti-counterfeiting tax control system, it cannot be reimbursed.

Note: Self-printing on A4 paper is not reimbursable.

(11) Refined oil invoices that do not contain the words "refined oil"; where the "Unit" and "Quantity" columns are filled in incorrectly; or that are not issued in the new unified invoicing system for refined oil invoices — none of these can be reimbursed!

4. 7 things not to do when receiving an invoice

(1) Invoices that do not have the purchaser's "Taxpayer Identification Number" filled in are absolutely unacceptable!

(2) Incorrect applicable tax rate is absolutely not allowed!

(3) Invoice content inconsistent with the actual business is absolutely not allowed!

(4) Invoices with generic names such as office supplies or food are absolutely not acceptable!

(5) Non-compliant invoice seals are absolutely not acceptable!

(6) When issuing aggregated invoices for office supplies, food, etc., the "List of Goods Sold or Taxable Services Provided" issued by the tax control system must be attached, with the special invoice seal affixed. Self-printed A4 paper lists are absolutely not acceptable!

For example: in a stationery store, if you buy some pens, notebooks, etc., the invoice must print out the commodity name, model, and quantity!

(7) Training meeting lists must be issued by the hotel system or sales system and affixed with the special invoice seal. Lists issued through other channels are absolutely invalid!

5. 20 invoice tax-related risk points

Under big data, enterprise data and information are transparent. Especially with the existence of Golden Tax Phase III and Phase IV, all illegal activities have nowhere to hide. The following 20 tax-related risk points regarding invoicing must be noted:

Risk 1: Using the threshold of the tax exemption amount to achieve false invoicing by the seller and inflated costs and expenses by the buyer, thereby evading VAT and corporate income tax. (Monthly exemption amount of 150,000 yuan or quarterly 450,000 yuan for small-scale taxpayers)

Risk 2: Obtaining white slips for bookkeeping or using other vouchers in place of invoices.

Risk 3: The seller arbitrarily voiding issued invoices without complying with regulations.

Risk 4: Obtained invoices have never been paid, or large cash payments.

Risk 5: Frequently issuing invoices in the early morning.

Risk 6: Checking the issue of mutual invoicing between enterprises.

Risk 7: Failing to issue qualified invoices in accordance with regulations.

Risk 8: The issue of incorrectly issuing tax-exempt invoices during the pandemic.

Risk 9: The issue of incorrectly issuing invoice lists.

Risk 10: Invoicing at the maximum amount.

Risk 11: Whether the taxpayer has mismatched purchases and sales, or obvious abnormalities in input and output VAT invoices.

Risk 12: Insufficient evidence chain for large expense invoices may bring the risk of being unable to deduct before tax.

Risk 13: Registering multiple small-scale taxpayers at the same address to issue invoices, or issuing invoices externally from the same IP address, is suspected of false invoicing.

Risk 14: When the invoicing amount is approaching the threshold of the tax exemption amount, invoice voiding often occurs, and the voiding ratio of VAT ordinary invoices is abnormal.

Risk 15: Newly established small-scale taxpayers issue large invoices in a short period, while the legal representative or person in charge is older, lacks operating capacity, or even lacks living capacity, etc., which is suspected of false invoicing.

Risk 16: Checking invoicing from distant places while avoiding nearby ones, or early warning risks related to the place of origin of goods.

Risk 17: The risk of obtaining too many invoices from tax havens.

Risk 18: Risks of agricultural product invoices.

Risk 19: Checking the issue of invoice issuance for individuals. Risk indicator for obtaining a large number or large amount of ordinary invoices issued on behalf of natural persons.

Risk 20: Special reminder: For invoices obtained with general items such as "consulting fees," "promotion fees," "conference fees," "office supplies," "food," "materials," "accessories," "daily necessities," "labor protection supplies," etc., attention should be paid to the tax-related risks of pre-tax deduction!

6. How to check whether an invoice is authentic? Plus other common questions

To verify whether an invoice is authentic, you can directly log in toNational VAT Invoice Verification Platformhttps://inv-veri.chinatax.gov.cn, verify the invoice information of special VAT invoices, general VAT invoices, unified motor vehicle sales invoices, and electronic general invoices issued by the new system.

7. Some common questions about invoices

Can invoices be stamped with a financial special seal or official seal?

No. Only a clear invoice special seal may be affixed to the invoice.

Is there a time limit for issuing a red-letter invoice?

There is no time limit. It can be issued as long as the conditions for issuing a red-letter invoice are met.

How should a general invoice obtained with an incorrectly filled tax rate be handled?

According to the Measures of the People's Republic of China for Invoice Administration, "invoices that do not comply with regulations shall not be used as financial reimbursement vouchers, and any unit or individual has the right to refuse them."

Therefore, the obtained invoice may be returned to the seller, and the seller may be required to reissue a correct invoice.

If the buyer's special invoice has already been deducted, how is a red-letter invoice issued?

If the purchaser has obtained a special invoice and already deducted it, it may fill out and upload the "Information Sheet" in the new invoice system. When filling out the "Information Sheet," the corresponding blue-letter special invoice information shall not be filled in, and the VAT amount listed in the "Information Sheet" shall be temporarily transferred out from the current period input tax. After obtaining the red-letter special invoice issued by the seller, it shall be used together with the "Information Sheet" as an accounting voucher.

Does the red-letter invoice issued by the seller need to be given to the buyer?

According to relevant provisions, if the purchaser has already deducted the special invoice, after the purchaser handles it according to Question 4, the seller may issue a red-letter invoice, and the corresponding copy of the red-letter special invoice (invoice and deduction copy) must be given to the purchaser.

Note: For other circumstances not explicitly stipulated, they should remain consistent with the Information Form. If the seller issues the Information Form, the red-letter invoice does not need to be given to the purchaser; if the purchaser issues the Information Form, the red-letter invoice needs to be given to the purchaser.

I am a general VAT taxpayer and plan to register as a small-scale taxpayer. After registering as a small-scale taxpayer, can I still issue special VAT invoices myself?

According to relevant provisions, taxpayers that have completed conversion registration may continue to use existing tax control equipment to issue VAT invoices and do not need to surrender and cancel the tax control equipment and VAT invoices.

For taxpayers that have converted registration, from the period following the conversion registration date, when business transactions occur, invoices shall be issued at the levy rate; if the type of special VAT invoice was already approved before the conversion registration date, special invoices shall continue to be self-issued through the VAT invoice management system; for the sale of real estate acquired by them, if a special invoice is required, they shall apply to the tax bureau for issuance by proxy in accordance with relevant provisions.

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.

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