How do individuals issue fully digitalized e-invoices on their own behalf?

Previously, invoice issuance for individuals required on-site issuance at a tax authority. Due to the small number of issuance outlets, long queues, and complicated procedures, this became the main obstacle to individuals actively requesting invoice issuance when taxable activities occurred.

With the popularization of fully digitalized e-invoices, individuals can also directly [issue invoices] on the electronic tax bureauOperate independentlyAgency issuance of fully digitalized e-invoices.

Search Baidu for "National Unified Former Individual Standard Electronic Tax Bureau + province or municipality (web version login required; mobile login is not yet well supported)", log in with your personal ID number, and you can see the following interface on the homepage:

After clicking "Reverse Invoicing of VAT Invoices," the following interface is displayed:

According to the information shown in the figure above, for individuals selling goods, providing services, or leasing real estate, invoices may be issued through the system upon application.

Taking the Beijing version as an example, in actual operation it was found that,Currently, for individual sales of goods, the system cannot yet issue fully digitalized e-invoices on behalf of individuals。

For other types of invoice issuance on behalf, the following issues also need attention.

I. Real estate leasing.

Property owners can apply for issuance of fully digitalized e-invoices,Sublessors who sublease can also apply within the system for issuance of fully digitalized e-invoices on their behalf。

1、 Property owner leasing real estate

Click "Lease of Real Estate" to enter the interfaceClick "Property Owner" to display the following interface:

Based on the above information, it can be seen that:

(1) The property owner's property ownership certificate must be uploaded;

(2) "Payment of sublease rent" cannot be filled in, i.e., there is no issue of sublease by the property owner.

(3) Following the offline invoice issuance on behalf model, taxes (including VAT and surcharges, stamp tax, property tax, urban land use tax, and individual income tax) must be paid in a lump sum at the time of invoicing.

Currently in Beijing, Chongqing, and other places, individual rental housing is subject to deemed taxation at a certain proportion of the rent (including all taxes and fees involved). After the deemed assessment, the actual taxes and fees paid are relatively reasonable.

2、 Sublessor Leasing Out Real Estate

Click "Lease of Real Estate" to enter the interface,Agency issuance applicantDo not click."Property owner"; the following interface is displayed:

Based on the above information, it can be seen that:

(1) The property owner's property ownership certificate does not necessarily have to be uploaded. Whether it needs to be uploaded is determined by the system based on the overall information filled in.

(2) "Payment of sublease rent" needs to be filled in; the rent paid by the sublessor to the property owner can be deducted when calculating individual income tax.

(3) Subletting housing by a sublessor does not involve property tax or urban land use tax (these taxes are paid by the property owner); other taxes (individual income tax, stamp tax, VAT and surcharges) must be paid normally.

Practical questions:

Zhang San leases his own property to Li Si for residential use, with a monthly rent of 5,000 yuan (after tax). Li Si then subleases the property to Company A for employee dormitory use, with a monthly rent of 8,000 yuan (tax included), but Li Si is required to provide an invoice. When Li Si paid rent to Zhang San, he did not obtain an invoice issued by Zhang San.

Li Si issued an 8,000 yuan invoice through the electronic tax bureau, filling in 5,000 for "payment of sublease rent." Since Zhang San did not declare tax on the 5,000 yuan rental income, in this situation, will the system recognize the 5,000 yuan sublease rent?

Theoretically, it should not be recognized. If recognized, it would inevitably lead to tax revenue loss.

What the actual situation is, interested readers can log in to the electronic tax bureau and try the operations themselves.

II. Tangible movable property leasing

If an individual leases their own vehicle to a company for use, going directly to the tax authority to issue an invoice is rather cumbersome.

Now individuals can directly issue fully digitalized e-invoices on the electronic tax bureau.

Click "General Reverse Invoicing for Goods, Services, etc." to display the following interface:

In the invoicing project name box, enter the keyword "operating lease" and select "Operating Lease — Other Tangible Movable Property." Fill in other information as prompted.

Issues to note:

1. VAT and surcharges, and stamp tax involved in invoicing must be paid directly at the time of invoicing.

2. The personal income tax involved shall be paid by the purchaser (the party paying the rent to the individual) before the 15th of the following month,Withhold and remit individual income tax on income from property leasing.(Note: this is not reporting rent as part of wages for tax purposes). If the purchaser fails to fulfill the withholding obligation, the invoice cannot serve as a lawful and valid voucher for pre-income-tax deduction.

III. Paid services

If an individual provides design, training, consulting, technical, agency, and other services to a company, they can also directly issue fully digitalized e-invoices through the electronic tax bureau.

Click "General Reverse Invoicing for Goods, Services, etc." to display the following interface:

In the invoicing project name box, enter keywords such as "design," "consulting," "technology," "agency," or "service," select the corresponding item, and fill in other information as prompted.

Issues to note:

1. VAT and surcharges, and stamp tax (if any) involved in invoicing must be paid directly at the time of invoicing.

2. The personal income tax involved shall be paid by the purchaser (the party paying the service fee to the individual) before the 15th of the following month,Withhold and remit individual income tax on remuneration for personal services. If the purchaser fails to fulfill the withholding obligation, the invoice cannot serve as a lawful and valid voucher for pre-income-tax deduction.

Kailing Technology invoice issuance for individuals solution

If you think the above steps are too complex, you might as well learn aboutKailing Technology's invoice issuance for individuals solution。

1.Log in to the Kailing invoice issuance for individuals system using the account registered with the Electronic Tax Bureau.

2.Upload specific invoicing information (such as property listing information) in the Kailing invoice issuance for individuals system.

3.The Kailing agency invoicing system connects to the electronic tax bureau, pulls orders in the backend and pays taxes on behalf, completing batch issuance of fully digitalized e-invoices.

After entrusting Kailing Technology, you do not need to operate in the Electronic Tax Bureau throughout the process; you only need to log in and authenticate in the Kailing entrusted invoicing mini program and pay the tax advanced by Kailing within the specified time the following month.

As a comprehensive business-finance-tax digitalization solution service provider, Kailing Technology provides business-finance-tax management digital transformation products and operational services for various government agencies, institutions, and large, medium, and small enterprises. The product line includes:

Solutions for businesses including sales contract management system, procurement contract management system, fully digitalized Leqi interface project, output automatic invoicing system, employee expense control and reimbursement system, input VAT invoice management system, supply chain collaborative reconciliation system, image OCR recognition system, automatic financial bookkeeping system, and electronic accounting archives system, comprehensively driving the digitalization process across various fields.

If you have any business-finance-tax digital transformation needs, welcome to contact us. Beijing Kailing Technology will serve you wholeheartedly.