Hot Q&A on Fully Digitalized E-Invoice Quota Adjustment

With the full rollout and application of fully digitalized e-invoices, more and more taxpayers are becoming proficient in using them. When taxpayers issue fully digitalized e-invoices through the electronic invoice service platform, "intelligent quota management" is implemented. Today let's take a look at the hot Q&A about fully digitalized e-invoice quotas!

1.Fully digitalized e-invoices require no tax copying or clearing, and the total invoicing amount limit is automatically restored on the 1st of each month?

Answer:Invoice quota restoration is not on the 1st of each month, but after the monthly (quarterly) tax filing. During the VAT filing period, before completing VAT filing as required, pilot taxpayers may issue invoices within the range of the previous month's remaining available quota and not exceeding the current month's total issuance amount quota. After pilot taxpayers complete VAT filing as required, they may issue invoices according to the current month's remaining available quota.

(1) For pilot taxpayers that file VAT returns monthly, the upper limit of the usable amount of the total issuance amount from the beginning of the month until the completion of the previous period's (i.e., last month's) filing is the remaining available amount of the previous month, and shall not exceed the total issuance amount of the current month;

After completing the filing for the previous tax period (i.e., the previous month) and passing the comparison, the upper limit of the usable quota is the remaining usable quota for the current month.

(2) For pilot taxpayers filing VAT quarterly, from the beginning of each quarter until completion of filing for the previous period (i.e., the previous quarter), the upper limit of the usable amount of the total issuance amount quota is the remaining usable amount of the previous month and shall not exceed the total issuance amount quota of the current month;

After completing the filing for the previous tax period (i.e., the previous quarter) and passing the comparison, the upper limit of the usable quota is the remaining usable quota for the current month.

2.When an enterprise manually applies to adjust its invoice quota, what matters need attention when uploading attachment materials?

Answer:When an enterprise initiates a manual application to adjust its invoice quota, it may choose any of the following materials as attachment materials according to its actual situation: purchase and sales contract, fixed asset schedule, other materials.

Note!!! If an enterprise chooses to upload a purchase and sales contract as attachment material, close cooperation between both contract parties is required. If the contract counterparty is a "natural person": upload the purchase and sales contract; if the contract counterparty is a "unit (enterprise)": fill in the detailed contract information and upload the attachment.

After initiating the application, if the contract counterparty is a "unit (enterprise)", the buyer must promptly log in to the Electronic Tax Bureau, click [I Want to Handle Taxes] - [Invoice Use] - [Invoice Quota Adjustment Application] - [Purchase and Sales Contract Confirmation], select "Received", and click [Query] to confirm the authenticity of the purchase and sales contract.

3.If an enterprise is a taxpayer in the counseling period or a D-level taxpayer, what special requirements apply when applying to increase its invoice quota?

Answer:When a general taxpayer in the counseling period or a Grade D general taxpayer included in the pilot applies for a manual adjustment of invoice quota for the first time in the current month, it shall, by reference to Article 9 of the Notice of the State Taxation Administration on Issuing the Measures for the Administration of the Tax Payment Counseling Period for General VAT Taxpayers (Guo Shui Fa [2010] No. 40), prepay VAT at 3% of the sales amount of fully digitalized e-invoices bearing the words "VAT Special Invoice" already issued since the last VAT prepayment this month (or since the first day of this month if no prepayment has been made this month) and VAT special invoices already purchased and issued (including paper special invoices and electronic VAT special invoices).

4.The enterprise is a pilot taxpayer for fully digitalized e-invoices and has no tax-related illegal acts or tax-related risks, but its invoice quota has been reduced to 0. What should be done?

Answer:If enterprises encounter such issues and have new invoicing needs, they can adjust the invoice quota through manual application.

Operation process: Log in to the Electronic Tax Bureau, [I Want to Handle Taxes]-[Invoice Use]-[Invoice Quota Adjustment Application]-[New Application], fill in [Application Quota Adjustment Information], choose to upload [Attachment Materials], i.e., purchase and sales contract, fixed asset status table, or other materials, click [Apply] to start the manual adjustment process.

5.What impact does issuing red-letter fully digitalized e-invoices through the electronic invoice service platform have on the total issuance amount limit?

Answer:If a red-letter fully digitalized e-invoice is issued in the same month as a blue-letter fully digitalized e-invoice, the electronic invoice service platform synchronously increases the remaining available invoicing quota for the current month; if the red-letter fully digitalized e-invoice is issued across months or the red-letter fully digitalized e-invoice cannot correspond to a fully digitalized e-invoice, the electronic invoice service platform does not increase the remaining available invoicing quota for the current month. In the case of sales discounts, the available invoice quota is also not increased.

Source: Xiamen Tax

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