Fully digitalized e-invoice red-letter reversal has changes! The tax authorities have made it clear!

Fully digitalized e-invoices can be partially red-flushed. Previously, there was a prerequisite for partial red-flushing:The invoice recipient must first confirm the purpose (including checking for bookkeeping, checking for deduction, etc.). If the invoice recipient has not confirmed the purpose, then if the seller wants to issue a red-letter invoice, it can only be a full red-letter reversal!

If the invoice recipient has not yet completed the purpose confirmation, the seller cannot initiate a partial red flush; the system automatically blocks changes to the amount, and the red-flush amount cannot be modified!

But now, fully digitalized e-invoices no longer require the recipient to confirm the purpose, and partial red-letter offsetting can be done directly!

I. New changes to fully digitalized e-invoices! Partial red-flushing function opened up!

With the full liberalization of the partial red-letter reversal function, attention should also be paid to:For partial red-letter reversal, the reason for issuing a red-letter invoice must be selected as "sales return" or "sales discount"; if "incorrect invoicing" is selected, only a full red-letter reversal can be performed.The specific operations are as follows:

1. Log in to the electronic tax bureau, click Invoice Business — Red-Letter Invoice Business.

2. Select the invoice to be reversed.

3. Click sales return or sales allowance issuance.

4. Modify the amount and click Submit.

II. Note! 4 types of fully digitalized e-invoices cannot be red-flushed!

Pilot taxpayers experienceIn cases such as goods return, invoicing error, service suspension, and sales allowance, red-letter fully digitalized e-invoices may be issued according to regulations.However, red-letter invoices are not allowed to be issued under 4 circumstances:

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initiated but no red-letter invoice has been issued, and the red-letter confirmation form or information table has not been revoked), a red-letter reversal is not allowed to be initiated;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

III. 8 key points that must be noted for fully digitalized e-invoice red-letter reversal

1. Reason for red-flush reversal

The reason for red-flush reversal should be determined by the taxpayer based on the actual business situation. Note that if the commodity and service code of the original blue invoice is only goods or labor, the red-flush reasonSelecting "service suspension" is not allowed.: When the goods and services code is for services only, the red-letter reversal reasonSelecting "sales return" is not allowed.。

2. Select the red-letter invoice type

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

3. Confirm purpose and recording

Fully digitalized e-invoicePurpose unconfirmed and not recordedyes,The invoicing party initiates the red-letter reversal processAfterward, the corresponding fully digitalized e-invoice will beLock, the invoice recipient is not allowed to perform invoice usage confirmation operations again.

Fully digitalized e-invoicePurpose unconfirmed but recordedyes, if the invoicing party issues a partial red-letter invoice, the recipient is allowed to perform deduction selection for the portion of the fully digitalized e-invoice not offset in red; if the invoicing party issues a full red-letter invoice, continued deduction selection is not allowed.

4. Time limit requirements

After a pilot taxpayer initiates the red-letter invoice issuance process, the counterparty's confirmation is subject to a time limit: after initiating the red-letter offset process，The invoicing party or the invoice recipient must confirm within 72 hours, and if not confirmed within the specified time, the process is automatically voided; if a red-letter invoice needs to be issued, the process should be re-initiated.

5. Available credit limit

After pilot taxpayers issue fully digitalized e-invoices,Issued in the current monthFor red-letter fully digitalized e-invoices, the electronic invoice service platformSynchronously increase its available credit limit。

Cross-month issuanceFor red-letter fully digitalized e-invoices, or where a red-letter fully digitalized e-invoice 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.

6. One-to-one correspondence with the original blue invoice

For the red-letter invoice issuance process initiated through the electronic invoice service platform, whether it is the Confirmation Form or the Information Form, it is requiredOne-to-one correspondence with the original blue invoice。

7. Process for issuing voided red-letter invoices

When a pilot taxpayer issues an invoice through the electronic invoice service platform, when issuing a red-letter invoice,Able to void the red-letter invoice issuance process，The specific rules are as follows:

(1) For a red-letter confirmation form initiated by the seller that requires no confirmation, the seller is allowed to withdraw it before a red-letter invoice is issued;

(2) After the initiator of the red-letter confirmation information submits the red-letter confirmation form, before the other party confirms it, modification is not allowed; the initiator may revoke the red-letter confirmation form;

(3) For a red-letter confirmation form initiated by either the buyer or seller and confirmed by the counterparty, the initiating party is not allowed to cancel the red-letter confirmation form; the confirming party may cancel the confirmation form after confirmation and before issuing the red-letter invoice;

(4) A red-letter confirmation form for which a red-letter invoice has already been issued may not be revoked;

(5) After initiating a red-letter confirmation form and before issuing a red-letter invoice, if the original blue-letter invoice is determined to be an abnormal voucher, the system will automatically void the red-letter reversal process.

8. After pilot taxpayers issue red-letter invoices through the electronic invoice service platform, do they need to recover the invoices already issued?

When a fully digitalized e-invoice issued by a pilot taxpayer through the electronic invoice service platform is reversed,No need to retrieve red-flushed fully digitalized e-invoices and their paper printouts;When paper invoices issued through the electronic invoice service platform are red-ink reversed, the red-ink reversed paper invoices need to be recovered.

IV. With fully digitalized e-invoices and the tax control device not yet deregistered, how can previous invoices be red-letter reversed?

There is such a question:

“We issued a paper special VAT invoice to the other party, and the other party has already deducted it. But we have now adopted fully digitalized e-invoices, and the tax control device has not yet been deregistered. The other party wants us to issue a red-letter reversal invoice. How should we issue it?”

There are two solutions:

Solution 1: Seller cancels tax control device → Buyer cancels the previously issued red-letter information form (must cancel first) → Seller logs into the fully digitalized e-invoice platform and applies for red-letter invoice business

As shown in the figure below:

Select an already issued tax-controlled invoice, and the system will pop up a red-letter confirmation form (note that this is now a red-letter confirmation form).

The confirmation form is transmitted to the buyer; after the buyer logs into the platform and confirms, the seller can use a fully digitalized e-invoice to issue a red-letter reversal of this tax-control invoice.

Solution 2: Seller does not cancel the tax control device, and applies for an additional tax control special invoice

If the tax authority still approves issuance, simply obtain one paper invoice and issue the red-letter invoice through the tax control device.

Source: internet compilation

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