China tax invoices (Fapiao), an important means for tax authorities to manage and supervise tax by methods of China official invoices, are the receipt and payment vouchers during business operations, as well as the original vouchers for business activities, and are the main vouchers for the production and business accounting for enterprises and individuals.
Such kind of receipt is not only the proof of the buyer’s expenditure, but also the seller’s income. It is commonly recognized as the legal proof of rights protection for the buyer, which can explain why China tax invoices are super important as long as you target the Chinese consumers.
Types of tax invoices
There are mainly four categories of China invoices, namely, VAT ordinary invoices, VAT special invoices, electronic VAT invoices and ordinary invoices.
How to apply for China tax invoices
According to Article 15 of the Procedures for Invoice Management of the People's Republic of China, enterprises and individuals who need to apply for invoices shall bring business license and the ID or passport original of the applicant, plus with invoice special chapter stamps to the tax authorities. If all the documents are complete and meet the requirements, the blank invoice will be issued on the spot.
If you apply for a special VAT invoice, you must register in advance as a VAT general taxpayer (excluding small-scale taxpayers from the lodging industry to issue invoices), and apply a maximum billing limit approval, a tax control card, or a gold tax disk.
How to obtain an official tax invoice in China
Enterprises and individuals that sell goods, provide services, and engage in other business activities shall receive payment from the buying parties. The payee shall issue an invoice to the payer.
When consumers purchase goods or receive services, they should take the initiative to request invoices while making payments. For invoices that do not meet the requirements, they have the right to reject or report to the tax authorities. When asking the seller to issue an invoice, he must not ask for a change in the name and amount or fill in the invoice for himself.
How to keep the invoices
Enterprises and individuals that purchase tax invoices from the tax authorities should deposit and keep the invoices in accordance with the regulations of the tax authorities and must establish a strict custody system to properly preserve the invoices and must not arbitrarily destroy the invoices.
If the loss or theft of an invoice occurs during the process of keeping the invoice, the enterprise shall report to the tax authority in writing on the date of the loss, and declare it as invalid. At the same time, the tax authorities shall accept the case in accordance with law.
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