[12366 Official Q&A] Those things about invoices

1. Can an invoice obtained that does not comply with regulations be used as an input VAT deduction voucher?

Answer:If the VAT deduction voucher obtained by a taxpayer does not comply with laws, administrative regulations, or relevant provisions of the State Taxation Administration, its input VATMust notDeducted from output VAT.

VAT deduction vouchers refer toVAT special invoices, customs import VAT special payment statements, agricultural product purchase invoices, agricultural product sales invoices, and tax payment vouchers.

If a taxpayer deducts input VAT based on tax payment vouchers, it shall have a written contract, payment proof, and the overseas entity's statement of account or invoice. If the materials are incomplete, the input VAT shall not be deducted from output VAT.

2. If a sales return or sales discount occurs after a taxpayer issues an invoice, how should the original invoice be handled?

Answer:I. According to the Decision of the State Taxation Administration on Amending the Detailed Rules for the Implementation of the Measures for the Administration of Invoices of the People's Republic of China (State Taxation Administration Order No. 56): "Article 26 of the Detailed Rules for the Implementation of the Measures for the Administration of Invoices of the People's Republic of China: After issuing a paper invoice, if circumstances such as sales return, incorrect invoicing, or termination of taxable services occur and the invoice needs to be voided,All copies of the original invoice shall be recovered and marked "Void" before the invoice is voided.

After issuing a paper invoice, if sales returns, invoicing errors, suspension of taxable services, sales discounts, or other circumstances occur and a red-letter invoice needs to be issued,All copies of the original invoice shall be recovered and marked "Red Offset" before a red-letter invoice is issued.If all copies of the original invoice cannot be recovered, a red-letter invoice shall be issued after obtaining valid proof from the counterparty.

Article 27 After issuing an electronic invoice, if situations such as sales returns, incorrect invoicing, termination of taxable services, or sales discounts occur,A red-letter invoice shall be issued as required.”

3. Should invoice surrender procedures be handled when changing or deregistering tax registration?

Answer:I. According to Article 16 of the Detailed Rules for the Implementation of the Tax Collection and Administration Law of the People's Republic of China (State Council Order No. 362): "Before a taxpayer handles cancellation of tax registration,Tax payable, late fees, and fines should be settled with the tax authorities, and invoices, tax registration certificates, and other tax certificates should be surrendered for cancellation.”

II. According to Article 27 of the Measures of the People's Republic of China for the Administration of Invoices (Guo Han [1993] No. 174): "Units and individuals that issue invoices shall, while handling the change or cancellation of tax registration, handle the invoiceChange and cancellation procedures.”

4. Can tax authorities entrust other units to issue ordinary invoices on their behalf?

Answer:According to Article 16 of the Decision of the State Council on Amending the Measures for the Administration of Invoices of the People's Republic of China (Order No. 587 of the State Council of the People's Republic of China): "Tax authorities, based on the needs of invoice administration,Invoices may be issued by proxy through other units entrusted in accordance with the provisions of the competent tax department of the State Council. Illegal issuance of invoices by proxy is prohibited."

Source: Shanghai Tax

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 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.

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