China business accounting, is one essential issue for your business doing in China, among which Chinese invoice (also called Fapiao) has ranked the top heated point for expats. So as one leading corporate service provider across China, Tannet would like to give you guideline to this point.
1. Basic Concepts of Chinese Invoice (Fapiao)
Fapiao is a kind of official receipt, which served like invoices in foreign countries. It has the following purposes
2. Types of Chinese Invoice (Fapiao)
There are two major categories of fapiao –general value-added tax (VAT) Fapiao and special value-added tax (VAT) Fapiao. The main difference between the two is that the latter can be used for tax deduction purposes, while the former cannot.
A. General VAT Fapiao
General VAT Fapiao is used as evidence of payment where special VAT Fapiao does not apply.
For enterprises or individuals who are not able to issue special VAT Fapiao (such as general commercial taxpayers who retail cigarettes, alcohol, food, clothing, shoes and hats, makeup, and other consumer goods). They should issue general Fapiao when selling commodities, providing taxable services, or conducting other operating activities.
B. Special VAT Fapiao
The special VAT Fapiao, is used for tax deduction purposes, it contains a lot more detailed information including the trader’s tax code, address, telephone number and bank account information.
3. Purposes for Issuing Chinese Invoice (Fapiao)
A. For Companies:
Served for tax deduction or accounting.
B. For individuals:
Get reimbursed for any kind of purchase in China;
Return a purchase or access other possible after-sales services.
4. Why Fapiao Matters to You?
As we keep reminding in this article, Fapiao reflects the tax-paid status of a company, if you consider hiring more foreign staff in the future, it is necessary to run the finance well. It gives more quotas in applying for work permits of a company!
As we know, after getting a work permit, then you can apply for working visa, and it needs to keep a good credit for years to gain a permanent residence!
5. Reminder
‘Xiao piao’ is kind of a receipt in China, which is only used for an evidence of a purchase, you cannot use a ‘Xiao piao’ to get reimbursed!
6. Tannet Services
Tannet is an excellent corporate service provider for 18 years, since we are armed with a group of experienced accounting experts. Moreover, we also provide taxation consultancy to local and overseas clients, individuals and corporate, including tax planning, tax return filing, objections and appeals.
Contact Us
If you have further queries, don’t hesitate to contact Tannet anytime, anywhere by simply visiting Tannet’s website english.tannet-grpup.com or www.tannet-group.net, or calling Hong Kong hotline at 852-27826888 or China hotline at 86-755-82143512, or emailing to tannet-solution@hotmail.com.
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