Yes or No? These situations allow reverse invoicing, learn in one article (with solutions)

"Reverse invoicing" refers to special circumstances in which the buyer (payer) issues an invoice to the seller (payee), such as resource recycling enterprises "reverse invoicing" individuals who sell scrapped products, or purchasing units issuing agricultural product purchase invoices to individual agricultural producers.

So what key points should be noted when applying the "reverse invoicing" policy? Let's use "yes or no" to help you understand!

Scenario 1: As long as purchases are made from individuals selling scrapped products, eligible resource recycling enterprises can use "reverse invoicing"!

NO！There is an exception! According to Article 3 of the Announcement of the State Taxation Administration on Matters Concerning "Reverse Invoicing" by Resource Recycling Enterprises to Individuals Selling Scrap Products (State Taxation Administration Announcement No. 5 of 2024), if an individual's cumulative sales amount under "reverse invoicing" for the sale of scrap products exceeds 5 million yuan over 12 consecutive months, the resource recycling enterprise may no longer issue "reverse invoices" to that individual. Resource recycling enterprises shall guide individuals who continuously engage in the sale of scrap products to register as business entities in accordance with the law and issue invoices themselves in accordance with regulations.

Scenario 2:Our company is an advertising company. Company A happens to have a used car for sale. If our company purchases it, we can issue a reverse invoice to them.！

No！According to the Notice of the Ministry of Commerce and 17 Other Departments on Several Measures to Invigorate Automobile Circulation and Expand Automobile Consumption（Business consumption invoicing[2022] No. 92)provisions, only when an enterprise registers its business scope with the commerce department as“Auto sales”And completing the filing information, and the commerce department has already passed the filing information to the tax department, only then can a unified used car sales invoice be issued in reverse.

Scenario 3: As an enterprise affiliated with State Grid Corporation of China, we now purchase electricity products from distributed photovoltaic power generation households and can issue reverse invoices, so we can issue special invoices for input VAT deduction!

No！In this situation“Reverse invoicing”Only VAT ordinary invoices can be issued.！According to the Announcement of the State Taxation Administration on Issues Concerning the Issuance of Invoices for Electricity Products of Distributed Photovoltaic Power Generation Projects Purchased by State Grid Corporation of China（State Taxation Administration Announcement No. 32 of 2014）provisions, when enterprises affiliated with State Grid Corporation of China purchase electricity products from power generation households of distributed photovoltaic power generation projects, ordinary invoices may be issued by enterprises affiliated with State Grid Corporation of China. When power generation households of photovoltaic power generation projects sell electricity products and should pay VAT according to tax law, enterprises affiliated with State Grid Corporation of China may calculate and collect VAT on their behalf using the simplified VAT calculation method, and issue ordinary invoices at the same time；Where VAT exemption policies may be enjoyed according to tax law provisions, ordinary invoices may be issued directly by enterprises affiliated with the State Grid Corporation of China.

Scenario 4:Our restaurant is a general VAT taxpayer and directly purchases agricultural products from farmers. It can issue an agricultural product purchase invoice, and according to the purchase price on the purchase invoice9% tax rate, calculate the input tax amount for input VAT deduction.

Yes！According to Article 8 of the Interim Regulations of the People's Republic of China on Value-Added Tax and the Announcement of the Ministry of Finance, the State Taxation Administration, and the General Administration of Customs on Policies for Deepening VAT Reform（Announcement No. 39 of 2019 by the Ministry of Finance, State Taxation Administration, and General Administration of Customs）provisions, when purchasing agricultural products, except where a special VAT invoice or customs import VAT special payment certificate is obtained, the input tax amount is calculated according to the agricultural product purchase price stated on the agricultural product purchase invoice or sales invoice and a 9% deduction rate.

If you want to learn more about reverse invoicing solutions, you can visit the Kailing Technology homepage to view past articles, or click directly to view:https://www.kailingteck.com/h-nd-531.html . For related needs, you are welcome to contact Kailing Technology directly~

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

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