Why have many enterprises' fully digitalized e-invoice credit limits been reduced recently?

Why Have So Many Enterprises Recently Had Their Quotas Reduced for Fully Digitalized E-Invoices? Most enterprises have seen their available invoicing quota drop to only tens of thousands, or even zero. New rules on fully digitalized e-invoice quotas have been issued. Let's take a look!

I. Background and Purpose of Quota Adjustment

The quota is an important indicator set by the State Taxation Administration to regulate taxpayers' invoicing behavior and improve tax collection and administration efficiency. The purpose of this adjustment is to better reflect taxpayers' actual invoicing situation and ensure the fairness and accuracy of tax collection and administration.

II. Quota Adjustment Rules

According to the notice, quota adjustment will follow the principle that "for taxpayers whose invoicing amount in the most recent 12 months does not reach 80% of the quota, the quota adjustment is reduced to the actual invoicing amount of the month with the highest invoicing amount in the most recent 12 months."

Taking a certain taxpayer as an example, assume it is a Class III taxpayer with an original quota of 400,000 yuan. However, over the past 12 months, the taxpayer's invoicing amount reached 320,000 yuan (i.e., 80% of the quota), and the highest monthly invoicing amount was only 50,000 yuan. Under the new rules, the taxpayer's quota will be adjusted to 50,000 yuan.

III. Faced with this quota adjustment, how should one respond?

If your enterprise has already undergone quota adjustment, especially some service-type enterprises and high-risk enterprises that make up the main group in this adjustment, and the adjusted enterprises find their quota insufficient, they can only go through the quota increase process again in the Electronic Tax Bureau or go to the tax service hall for the quota increase process.

Recently our company has a revenue that needs invoicing, but why is the invoice quota insufficient at the beginning of the month?？

The invoice quota is not automatically restored on the 1st of each month. During the VAT filing period, before completing VAT filing as required, pilot taxpayers may issue invoices in the electronic invoice service platform within the range of the previous month's remaining available invoice quota and not exceeding the current month's total invoice quota. After pilot taxpayers complete VAT filing as required and pass comparison, they may issue invoices in the electronic invoice service platform according to the current month's remaining available invoice quota.

01 If you are a pilot taxpayer filing VAT monthly

1. Before filing, the available invoice quota for the month is the remaining invoice quota from the previous month, and shall not exceed the total invoice quota for the current month;

2. After filing is completed and verification passes, the credit limit for the month is restored.

02 If you are a pilot taxpayer filing VAT quarterly

1. For quarterly filing enterprises, outside the quarterly filing month, the credit limit is automatically restored at the beginning of each month

2. In quarterly filing months (January, April, July, October), the available invoice quota before filing is the remaining invoice quota from the previous month and does not exceed the total invoice quota for the current month; after filing is completed and verification is passed, the current month's credit quota is restored.

For example:

If your company is a pilot taxpayer filing monthly, with a total invoice quota of 1 million yuan for December 2023, and the actual used quota as of December 31 is 700,000 yuan. From January 1, 2024 to before filing, the remaining available invoice quota is 300,000 yuan. After filing is completed and verification is passed, the usable quota will automatically restore to the January 2024 invoice quota.

So what should be done if the invoicing quota is insufficient after filing?

Taxpayers with relatively good credit who meet the conditions will automatically trigger a temporary system increase once a month, valid for the current month. If the quota is still insufficient, you can also apply for manual adjustment through the "Tax Digital Account - Invoice Quota Adjustment Application" module of the Electronic Invoice Service Platform, apply to adjust the invoice quota, fill in the adjustment reason, and upload the relevant attachments in sequence to start the manual adjustment process.

Source: Shanghai Tax

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