Why are so many enterprises' fully digitalized e-invoices downgraded? How should enterprises respond?

Recently, many enterprises have reported that fully digitalized e-invoice quotas have been reduced, with most enterprises having an invoicing quota of only tens of thousands. So why have so many enterprises had their fully digitalized e-invoice quotas reduced? How should enterprises respond to quota reduction adjustments?

I. Why are so many enterprises' fully digitalized e-invoices downgraded?

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." The specific reasons are as follows:

1. Insufficient invoicing. If the total invoice amount you issue over a recent period consistently fails to reach the standard set for you by the tax authority, for example, you can issue 100,000 per month but actually issue only 50,000, and this continues for several months, the tax authority may consider the quota granted to you too high and lower it.

2. The company's operating situation has changed. For example, if your company's business has decreased, or it has transformed to do something else and no longer needs to issue so many invoices, the tax authority will accordingly adjust your invoice quota.

3. Tax issues. If your company previously had tax arrears, tax evasion, or incomplete social security payments, the tax authority may limit your invoice quota as a management measure.

4. Policy changes. National tax policies are sometimes adjusted, which may also affect your invoice quota. For example, to strengthen tax supervision and prevent tax evasion, the tax bureau may reduce the invoice quota of some enterprises.

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.

II. Faced with quota reduction adjustments, how should enterprises respond?

1. If the enterprise is a pilot taxpayer filing VAT on a monthly basis

(1) Before filing, the usable invoice amount for the current month is the remaining invoice amount of the previous month, and shall not exceed the total invoice amount of the current month;

(2) After filing is completed and verification is passed, the current month's credit quota is restored.

2. If the enterprise is a pilot taxpayer filing VAT returns quarterly

(1) For quarterly reporting enterprises, in months other than the quarterly reporting month, the credit limit is automatically restored at the beginning of each month

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

For example: the company is a pilot taxpayer filing monthly. In December 2023, the total invoice quota was 1 million yuan, and as of December 31, the actual used quota was 700,000 yuan. From January 1, 2024 until filing, the remaining available invoice quota is 300,000 yuan. After filing is completed and verification passes, the usable quota automatically restores to the January 2024 invoice quota.

III. Answers to hot issues on fully digitalized e-invoices

1. If a fully digitalized e-invoice is issued incorrectly, can it be voided?

No. Fully digitalized e-invoices cannot be voided after issuance. After a taxpayer issues a blue-letter invoice, in cases such as sales returns, incorrect invoicing, or suspension of taxable services, or due to partial returns by the seller and sales discounts, a red-letter digitalized e-invoice must be issued in accordance with regulations regardless of whether it is the same month or across months.

2、 Can I apply to have the tax authority issue fully digitalized e-invoices on my behalf?

No. Currently, tax authorities do not issue fully digitalized e-invoices on behalf of taxpayers.

3. Logging into the Electronic Tax Bureau prompts "Login failed, application permission does not exist"?

When some taxpayers log in, they are always prompted with insufficient application permissions. First ensure that the account is not logged in on another computer, and check whether the browser version on this computer meets the requirements. If login still fails after confirmation, clear the browser cache and try again.

4. My enterprise has tax-exempt business. How should tax-exempt fully digitalized e-invoices be issued?

To issue tax-exempt invoices, it is recommended to first maintain the item information in item information maintenance. In the item information maintenance module, there is an option for whether to select preferential policies and simplified taxation, where you select tax exemption. After maintenance, when issuing an invoice, click the maintained item information and it will automatically bring out the tax-exempt status.

5. If a general taxpayer has no input VAT invoice in the current period, can it file VAT without confirmation?

No. Even if there are no input VAT invoices requiring selection and certification in the current period, statistical confirmation must still be completed before filing VAT.

6. For pilot taxpayers of fully digitalized e-invoices, if they still have paper invoices on hand, must they wait until the invoices on hand are fully issued before they can issue fully digitalized e-invoices? Can they continue to purchase paper special VAT invoices?

If pilot taxpayers still have paper invoices, they can issue both fully digitalized e-invoices and paper invoices (via tax control invoicing) at the same time, and do not need to wait until the paper invoices are used up before issuing fully digitalized e-invoices. For pilot taxpayers, once their paper invoices on hand are used up, in principle no more paper invoices will be issued.

7. Is there a limit on the invoicing amount per fully digitalized e-invoice issued through the electronic invoice service platform?

Fully digitalized e-invoices have no maximum invoicing limit. As long as it is within the total credit amount, there is no limit on the number of invoices issued or the per-invoice amount, and invoices can be issued directly.

8. After the pilot of fully digitalized e-invoices, can paper invoices still continue to be used?

Yes. Existing paper VAT special invoices and VAT general invoices in stock can continue to be used.

9、 Why are the numbers of fully digitalized e-invoices not sequential?

Fully digitalized e-invoice numbers are uniformly assigned nationwide, using 20-digit invoice numbers, which are actually sequential. However, in actual invoicing, more than one taxpayer is issuing invoices, and other taxpayers are also issuing. Therefore, for a particular taxpayer, the numbers may not appear sequential.

10. During the invoicing process, if a pilot taxpayer is prompted that invoicing cannot continue, how should it be handled?

The E-invoice Service Platform will block invoicing for pilot taxpayers with a "red" warning in invoice issuance, or in cases such as content validation failure during invoice issuance or a zero credit limit; pilot taxpayers need to perform corresponding operations according to the prompts.

If it is a red alert, you need to contact the competent tax authority for handling; if content verification fails, the invoice issuance content needs to be changed; if the credit limit is zero, you can apply for a limit adjustment, etc.

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