[Hot Q&A] Can the Total Invoice Quota Be Adjusted? Summary of Last Week's Hot Issues

1. What are the verification channels for fully digitalized e-invoices?

Answer:Entities and individuals throughNational VAT Invoice Verification Platform(https://inv-veri.chinatax.gov.cn) for verification; pilot taxpayers can verify fully digitalized e-invoice information through the invoice verification module of the tax digital account on the electronic invoice service platform.

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2. Which enterprises can issue electronic itineraries?

Answer:According to the Announcement of the State Taxation Administration, the Ministry of Finance, and the Civil Aviation Administration of China on Promoting the Use of Fully Digitalized Electronic Invoices for Civil Aviation Passenger Transport Services (Announcement No. 9 of 2024 of the State Taxation Administration, the Ministry of Finance, and the Civil Aviation Administration of China): "1. Public air transport enterprises registered within the territory of the People's Republic of China (hereinafter referred to as air transport enterprises) and air transport sales agency enterprises (hereinafter referred to as agency enterprises) that provide domestic passenger transport services may issue electronic invoices (air transport electronic passenger ticket itineraries) (hereinafter referred to as electronic itineraries).

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10. This announcement shall take effect on December 1, 2024."

3. How do passengers obtain a railway electronic ticket?

Answer:According to the Announcement of the State Taxation Administration, the Ministry of Finance, and China State Railway Group Co., Ltd. on Promoting the Use of Fully Digitalized Electronic Invoices for Railway Passenger Transport (Announcement No. 8 of 2024 of the State Taxation Administration, the Ministry of Finance, and China State Railway Group Co., Ltd.): "4. After the journey ends or after paying refund or change fees, passengers may truthfully obtain electronic invoices (railway electronic passenger tickets) through Railway 12306 (including the website and mobile client, the same below). Railway transport enterprises shall truthfully issue electronic invoices (railway electronic passenger tickets) based on the purchaser name, unified social credit code, itinerary information, etc. provided by passengers. 5. Railway transport enterprises shall deliver electronic invoices (railway electronic passenger tickets) to passengers by downloading through Railway 12306 or by email, etc. Passengers may query, download, and print electronic invoices (railway electronic passenger tickets) through Railway 12306.

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11. This announcement shall take effect on November 1, 2024."

4. What is the fully digitalized e-invoice total quota? Can the total invoice quota be adjusted?

Answer:According to the Announcement of the State Taxation Administration on Promoting the Application of Fully Digitalized Electronic Invoices (Announcement No. 11 of 2024 of the State Taxation Administration), 6. Tax authorities grant a total invoice quota through the electronic invoice service platform based on factors such as the taxpayer's degree of tax risk, tax credit rating, and actual business situation, and implement dynamic adjustment. The total invoice quota refers to the upper limit of the total invoicing amount (excluding VAT) of a taxpayer within one calendar month.

If a taxpayer needs to adjust the total invoice quota due to changes in actual business conditions, it shall be adjusted after confirmation by the competent tax authority.

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12. This announcement shall take effect on December 1, 2024.

5. In which situations does a taxpayer receiving a fully digitalized e-invoice need to confirm the purpose through the tax digital account?

Answer:According to the Announcement of the State Taxation Administration on Promoting the Application of Fully Digitalized Electronic Invoices (Announcement No. 11 of 2024 of the State Taxation Administration), 10. After the invoice recipient obtains a fully digitalized e-invoice, if it needs to be used for filing to deduct VAT input tax, refined oil consumption tax, or to apply for export tax refund, tax refund on behalf of others, or to check refined oil inventory, it shall confirm the purpose through the tax digital account. If the confirmed purpose is incorrect, it may apply to the competent tax authority for correction.

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12. This announcement shall take effect on December 1, 2024.

6. If this year's paid-in capital and capital reserve have not increased compared with last year, does the business account book need a zero filing?

Answer:Article 11 of the "Stamp Tax Law of the People's Republic of China" stipulates that for business account books on which stamp tax has been paid, if in subsequent years the total amount of paid-in capital (share capital) and capital reserve increases compared with the total amount of paid-in capital (share capital) and capital reserve on which stamp tax has been paid, the tax payable shall be calculated on the increased portion. If the paid-in capital and capital reserve in the previous year did not increase compared with the prior year, the tax basis is zero, and a zero filing must be made within the filing period of the following year.

Source: Beijing Tax

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