Kailing Technology professional comprehensive analysis: complete guide to issuing red-letter fully digitalized e-invoices

I. During the parallel period of tax control invoices and fully digitalized e-invoices, the red-letter reversal rule among invoice types is "new reverses old, electronic reverses paper"

1. Fully Digitalized E-invoice

▪ Fully digitalized e-invoiceInvoiceRed-letter reversal can be performed on the following invoices:

  - Fully Digitalized E-invoice

  - Fully digitalized electronic paper invoice(paper invoices issued through the electronic invoice service platform)

  - Tax control invoice

2. Fully digitalized electronic paper invoice

▪ Fully digitalized electronic paper invoiceRed-letter reversal can be performed on the following invoices:

  - Fully digitalized electronic paper invoice

  - Tax control invoice

▪ Not allowed forFully Digitalized E-invoiceCarry out red reversal.

3. Tax control invoice

▪ Tax control invoiceOnly allowed forTax control invoiceCarry out red reversal.

▪ Not allowed forFully Digitalized E-invoice、Fully digitalized electronic paper invoiceCarry out red reversal.

II. Rules for issuing red-letter invoices during the parallel period of tax control invoices and fully digitalized e-invoices (including fully digitalized paper invoices)

Note:

The following content applies only to the following invoice types:

- Special VAT invoice

- Electronic special VAT invoice

- Fully digitalized e-invoiceSpecial VAT invoice

- Fully digitalized e-invoiceSpecial VAT invoice (paper)

Remarks：

1. Issued by sellerFully digitalized e-invoiceInvoices (includingFully digitalized e-invoiceAfter (paper invoice),No longer simply use whether input VAT has been credited or deducted as the basis for determining which party initiates red-letter confirmation.. If an enterprise performs invoice booking in the tax digital account (both fully digitalized special and general invoices can be booked), the nature is equivalent to performing invoice deduction selection.

2.Fully digitalized e-invoiceInvoices (includingFully digitalized e-invoiceDuring the parallel period with tax-controlled invoices, please determine how to issue red-letter invoices according to the following conditions:

   - Blue invoice type

   - Whether the buyer and seller areFully digitalized e-invoicePilot enterprise

  - Whether this blue-letter invoice has already had its purpose confirmed or been booked.

III. After issuing a red-letter fully digitalized e-invoice (including fully digitalized paper invoices), how does the credit limit change?

1. Tax-controlled invoices andFully digitalized e-invoiceInvoices (includingFully digitalized e-invoiceDuring the parallel period (paper invoice):

   - Red-ink confirmation forms issued through the electronic invoice service platform can be queried in the tax-control invoicing software。

2.Fully digitalized e-invoiceInvoices (includingFully digitalized e-invoice(Paper invoice) users issue red-letterFully digitalized e-invoiceAt invoice time:

   - Fully digitalized e-invoiceRed-letter invoiceCan issue amountIt is necessary to, in the userWithin the currently available blue-letter credit limit range。

3. For blue-letter invoices issued in the current monthFully digitalized e-invoiceInvoice initiates red-letter confirmation form:

   - If inCurrent monthIssue red-letter invoices instantlyFully digitalized e-invoiceInvoices, electronic invoice service platformSynchronously increase its remaining available limit for the current month。

   - IfCross-monthIssue red-letterFully digitalized e-invoiceInvoices, electronic invoice service platformDoes not increase its remaining available limit for the month。

IV. Other

Red-letter reversal rules

1. The purchaser has not responded to theFully digitalized e-invoiceInvoices (includingFully digitalized e-invoiceWhen (paper invoice) users confirm the purpose:

   - The seller initiates the red-ink confirmation form, supporting only full-face red-ink reversal,Partial red-letter reversal not supported。

2. To initiate a red-letter confirmation form, a red-letter reversal reason must be selected:

   - If you select[Invoicing Error]，Only full-invoice red-letter reversal is supported, partial red-letter reversal is not supported.

   - If you select[Sales Return][Service Suspension]or [Sales Discount], thenSupports partial red-letter reversal。

3. When the red-letter reversal reason is [sales return]:

   - Only quantity can be modified; amount and tax are calculated automatically; unit price cannot be modified, the amount cannot be modified directly。

   - If the blue invoice has no quantity but only an amount, the amount may be modified, and the tax amount is calculated automatically.

4. When the red-letter reversal reason is [service suspension]:

   - Allow modification of amount and quantity, cannot modify unit price, automatically calculate tax amount。

5. When the red-letter reversal reason is [sales allowance]:

   - Only amount can be modified; quantity and unit price are automatically hidden; tax is calculated automatically.

Special circumstances

1. Corresponding to the blue-letter invoice[VAT preferential use tag]For the following situations:

   - [Pending Full Additional Deduction of Agricultural Products]or[Already Used for Full Additional Deduction of Agricultural Products]：

     - MustFull red reversal。

   - [Pending additional deduction for agricultural products] or [Additional deduction already used for agricultural products]:

     - The first red-letter reversal can only be applied toFull red-letter reversal of the non-super-deduction portion or full red-letter reversal of the entire invoice。If it is the first time to reconcileFull red-letter reversal of the non-super-deduction portion，The second red-letter reversal is only allowed forRemaining part（i.e., the portion already added for deduction）Full red reversal；

2. The blue-letter invoice label is[Differential Taxation - Differential Invoicing]when:

   - MustFull red reversal。

Red-letter confirmation form rules

1. After either party initiates a red-letter invoice confirmation form on the electronic invoice service platform, the other party needs to72 hoursconfirm the operation within, otherwise the red-ink confirmation formAutomatic Voiding, the seller cannot use this red-letter confirmation form to issue a red-letterFully digitalized e-invoiceInvoice.

2. When initiating the red-letter issuance process through the electronic invoice service platform, regardless of whether the blue-letter invoice is a tax-control invoice orFully digitalized e-invoiceInvoices (includingFully digitalized e-invoice(Paper invoice), the content of the red-letter confirmation form (or red-letter information form) must be consistent with the content of the original blue-letter invoiceOne-to-one correspondence, no consolidated applications allowed。

3. Initiated by the sellerNo confirmation requiredred-letter confirmation form, before a red-letter invoice is issued,Allow the seller to withdraw。

4. Buyer and sellerInitiated by either partyandThe counterparty's confirmedRed-letter confirmation form, initiating partyCancellation is not allowed.Red-letter confirmation form, the confirming party mayAfter confirmationand before a red-letter invoice is issued, it canRevocation confirmation form。

5. A red-letter confirmation form for which a red-letter invoice has already been issued cannot be revoked.

6. InitiateAfter the red-letter confirmation form and before issuing the red-letter invoice, original blue-letter invoiceIf identified as abnormal vouchers, the system automatically voids the red-offset process.。

7. After the initiator of the red-letter confirmation information submits the red-letter confirmation form, it is not allowed to be modified before the other party confirms it; the initiator may cancel the red-letter confirmation form.

Export tax refund related

According to[Announcement No. 1 of 2022 of the Shanghai Municipal Tax Service of the State Taxation Administration]Announcement, issued through the electronic invoice service platformFully digitalized e-invoiceThe invoice or paper invoice has been used forApply for export tax refund、Tax refund agencyyes,Issuance of red-letter invoices is temporarily not allowedFully digitalized e-invoiceInvoice。

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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:

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