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

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

Under general circumstances, when a pilot taxpayer has sales returns or invoicingIn cases such as errors, service suspension, or sales allowances, red-letter fully digitalized e-invoices may be issued according to regulations.

However, red-letter fully digitalized e-invoices are not allowed to be issued under the following circumstances：

(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initiated but no red-letter invoice has been issued, and the red-letter confirmation form or information table has not been revoked), a red-letter reversal is not allowed to be initiated;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.

2. How do I issue a red-letter reversal of a fully digitalized e-invoice on the Electronic Tax Bureau?

After a taxpayer issues a blue-letter invoice, if a sales return (including full return and partial return), invoicing error, service termination (including full termination and partial termination), sales allowance, or other such situation occurs, a red-letter invoice shall be issued in accordance with regulations.

Taxpayers may enter in sequenceOn the [I Want to Handle Taxes] - [Invoicing Business] - [Red Invoice Issuance] page, click "Red Information Confirmation Form Entry" to enter the red information confirmation form entry interface. Enter the query conditions, click the [Query] button to query the blue invoice information that needs to be reversed. After clicking "Select" in the query results, enter the [Red Information Confirmation Form Entry Page]. On this page, if the fully digitalized e-invoice type selected is "electronic invoice", click the [Submit] button, and a prompt appears: "Dear taxpayer, the red invoice type you selected is 'electronic invoice'. After confirmation by the confirming party, the system will directly generate a red invoice. Please confirm whether to continue submitting?" Click [Confirm], and the red invoice is issued successfully; if the fully digitalized e-invoice type selected is "paper invoice of the same type as the original blue invoice", click [Confirm] to jump to the "Submission Successful" interface, indicating that the red information confirmation form was submitted successfully.

If the situation requires confirmation by the other party,After logging in, the counterparty taxpayer can process this on the [I Want to Handle Tax] - [Invoicing Business] - [Red-Letter Invoice Issuance] - [Red-Letter Information Confirmation Sheet Processing] page. Select "Confirm" to agree to the red reversal, or "Reject" to disagree. The red-letter information confirmation sheet can also be revoked.

When the status of the red-letter information confirmation form is confirmed by both buyer and seller or confirmation is not required,Taxpayers may enter in sequence the [I Want to Handle Taxes] - [Invoicing Business] - [Red-Letter Invoice Issuance] page, click "Red-Letter Invoice Issuance" in the common functions module, enter query conditions to query the previously issued red-letter information confirmation form, click "Go to Invoice" on the right, enter the red-letter invoice issuance page, and then issue the red-letter invoice normally.

3.When initiating a red-letter reversal for fully digitalized e-invoices, how should the red-letter invoice type be selected?

The red-ink reversal rules between invoice types are "new reverses old, electronic reverses paper," as follows:

(1) Fully digitalized e-invoices can be red-letter reversed against fully digitalized e-invoices, fully digitalized paper invoices (paper invoices issued by the electronic invoice service platform), and tax control invoices (provided that the tax control archive has been deregistered);

(2) Fully digitalized paper invoices can be red-letter reversed against fully digitalized paper invoices and tax control invoices, but red-letter reversal against fully digitalized e-invoices is not allowed (the premise is that the tax control archives have been cancelled);

(3) Tax-controlled invoices may only be red-letter reversed against tax-controlled invoices; red-letter reversal against fully digitalized e-invoices or fully digitalized paper invoices is not allowed.

Source: Beijing Tax

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