[Knowledge Growth] Easily Master the Credit Limit of Fully Digitalized E-Invoices, a Detailed Analysis

1.Our company applied to be included in the fully digitalized e-invoice pilot in March this year. Where can I check my credit limit?

View path:I Want to Handle Tax Matters → Tax Digital Account → Tax Digital Account → scroll down to "Invoicing Business." The available credit limit is the amount a taxpayer can currently use within one calendar month. The total credit limit is the upper limit of the amount a taxpayer can use within one calendar month.

2.What should I do if my quota is insufficient?

There are three ways to adjust the credit limit, including regular adjustment, temporary adjustment, and manual adjustment.

(1) Periodic adjustment

Periodic adjustment means the electronic invoice service platform automatically adjusts the total credit limit of pilot taxpayers each month.

(2) Temporary adjustment

Temporary adjustment means that when the invoice amount issued by a pilot taxpayer with a relatively low tax risk in the current month reaches a certain proportion of the total credit limit for the first time, the electronic invoice service platform automatically increases a certain limit temporarily for that month.

(3) Manual adjustment

Manual adjustment means that a pilot taxpayer applies to adjust the total credit limit due to changes in actual business conditions, and if the competent tax authority finds no abnormality upon review in accordance with laws and regulations, it shall adjust the total credit limit for the taxpayer.

3.Both periodic adjustment and temporary adjustment are automatic system adjustments, so under what circumstances do I need to request a manual adjustment?

If the total credit limit of a pilot taxpayer is insufficient and remains insufficient after automatic system adjustment, the taxpayer may apply to the competent tax authority for adjustment of the total credit limit. The tax authority will adjust the total credit limit based on factors such as the taxpayer's risk level, tax credit rating, and actual business conditions.

4.How should I operate? How do I apply to adjust the credit limit?

Pilot taxpayers apply to adjust the total credit limit through the "Tax Digital Account—Credit Limit Adjustment Application" module of the electronic invoice service platform. After filling in the adjustment reason and uploading relevant attachments, the manual adjustment process can be initiated.

5.After being included as a pilot enterprise for fully digitalized e-invoices, can I still issue paper invoices? What should I note when applying for and issuing paper invoices?

Pilot taxpayers throughE-invoice Service PlatformWhen issuing paper special invoices and paper ordinary invoices, the invoicing amount of a single invoice shall not exceed the maximum invoicing limit per invoice and shall not exceed the remaining available quota for the month, and the remaining available quota for the month is deducted according to the actual invoicing amount.

Pilot taxpayers obtain throughVAT invoice management systemWhen issuing paper special invoices, paper ordinary invoices, roll invoices, VAT electronic special invoices, and VAT electronic ordinary invoices, the remaining available quota for the month is deducted by the product of the number of copies collected and the maximum invoicing limit per invoice, and the remaining available quota for the month is no longer deducted at the time of issuance.

6.If my fully digitalized e-invoice is issued incorrectly, can I still issue a red-letter reversal? After the red-letter reversal, will the deducted quota be returned?

After pilot taxpayers issue fully digitalized e-invoices,Current monthFor those issuing red-letter fully digitalized e-invoices, the electronic invoice service platform synchronouslyAddIts available credit limit.

If a red-letter fully digitalized e-invoice is issued across months, or if the red-letter fully digitalized e-invoice issued cannot correspond to a fully digitalized e-invoice, the electronic invoice service platformNo increaseIts available credit limit for the current month. In the case of sales allowances, its available credit limit will also not be increased.

Source: State Taxation Administration

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