Official reminder from the tax bureau: When issuing agricultural product purchase invoices, pay attention to these six risk points (with Kailing Technology's "one-on-one" solution)

An agricultural product procurement invoice is a type of VAT deduction voucher, and is an invoice that agricultural product procurement enterprises issue "to themselves" when procuring self-produced agricultural products from individual agricultural producers (excluding self-employed operators engaged in agricultural product procurement). Because agricultural product procurement invoices have the characteristic of being self-issued and self-deducted, there are "many particularities" when issuing them.

I. Purchaser information

The purchaser must be the actual purchasing enterprise, with complete information filled in, and must not swap the seller and purchaser columns when issuing purchase invoices.

Risk point alert:Note! Only enterprises engaged in agricultural product procurement business can obtain issuance qualification after completing the "agricultural product procurement enterprise" qualification filing with the tax authorities!

Kailing Technology Solutions:The merchant onboarding process enforces compliance verification. Enterprises need to fill in basic information, upload their business license and legal representative's ID card, and confirm authorization through the electronic tax bureau. Only after completing qualification filing can they create purchase orders, ensuring the buyer's identity is authentic and information is complete.

II. Seller information

The seller shall truthfully fill in the name and resident ID number of the agricultural producer who actually supplied the goods.

Risk point alert:It must be consistent with the agricultural producer's ID card and purchase-sale contract information. If information is missing or false, it will affect the authenticity of the purchasing business and invoice compliance!

Kailing Technology Solutions:Individuals need to complete mobile phone number login, real-name authentication, and facial recognition, and the system retains authentic identity information; when orders are created, historical transaction individuals are associated, and their bank card information is bound at payment to ensure the seller information matches the certificate, with no falsification or omission.

III. Project Name

In the item name, be precise to the specific name of the agricultural product, such as "wheat" or "corn."

Risk point alert:Must not be filled in generically as "agricultural products" or "grain," nor exceed the scope of primary agricultural products, otherwise input VAT cannot be declared normally.

Kailing Technology Solutions:When creating an order, specific product details must be added (such as pumpkin, potato), and the corresponding product category selected (vegetable category, meat and poultry category, etc.). The system has built-in validation rules for the scope of primary agricultural product taxation, preventing vague entries or entries beyond the scope.

IV. Tax rate / Levy rate

Tax-free does not equal not taxable！“Tax rate”Need to choose“Tax-free”！

Risk point alert:Do not select "zero rate" or "not taxed", otherwise deduction will be impossible!

Kailing Technology Solutions:During invoicing, the system automatically displays a prompt for the agricultural product procurement policy, clearly stating the tax exemption description and tax rate rules, and defaults to the "tax-exempt" option to prevent manual selection errors that would make deduction impossible.

V. Remarks column

The remarks should clearly state the detailed address of the farmer's breeding or planting site, the farmer's real and valid contact information, and the payment method for the goods.，Such as bank transfer, Alipay, WeChat Pay, etc.

Risk point alert:Failure to fill in truthfully will affect invoice compliance and the accuracy of tax handling!

Kailing Technology Solutions:The mobile phone number (contact information) retained during individual registration, orders can be linked to planting/breeding address information, and the payment method is automatically recorded by the platform (supporting bank transfer, WeChat, etc.). The system automatically fills the above information into the remarks column without manual entry.

Six, Must not issue invoices in aggregate

Purchases from multiple agricultural producers must also be invoiced one person per invoice.

Risk point alert:Must not issue a single purchase invoice in aggregate, otherwise there is a risk of false invoicing!

Kailing Technology Solutions:The system forcibly issues invoices separately by payee, and a single transaction directly generates an independent invoice; during batch payment, only multiple orders of the same payee are allowed to be merged into one invoice, without aggregation across payees, fully complying with the "one person, one invoice" requirement.

Note:After issuance，Please remember to properly retain the seller's ID card copy, self-production certificate, weighing slip, and other materials; this is not only strong proof of the authenticity of the transaction，It is also an important manifestation of complying with tax regulations and operating with integrity.

Kailing Technology Solutions:The system automatically stores individuals' real-name authentication information, order transaction records, logistics information, and payment vouchers, and supports real-time linked queries between invoices, orders, and fund information, forming "four-stream integration" electronic archives that replace paper document retention and facilitate audit verification.

Policy basis:

Articles 8 and 15 of the "Interim Regulations of the People's Republic of China on Value-Added Tax"

Notice of the Ministry of Finance and the State Taxation Administration on Issuing the <Annotations on the Scope of Taxation of Agricultural Products>Notice》（Cai Shui Zi[[1995] No. 52）

Article 21 of the "Measures of the People's Republic of China for the Administration of Invoices"

Article 28 of the "Detailed Rules for the Implementation of the Measures of the People's Republic of China for the Administration of Invoices"

If you are troubled by the business-finance-tax compliance issues of agricultural product procurement, welcome to learn about Kailing Technology's reverse invoicing solution. Our professional team provides customized consulting services to help enterprises achieve a win-win of compliant operations and efficiency improvement：https://www.kailingteck.com/h-col-127.html 。

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.