Chinese VAT invoices
Chinese Golden Tax System
China operates a centralised invoicing system, known as the Golden Tax System which restricts companies to issuing invoices on government certified software, pre-numbered invoices and printers.
The issuance of approved VAT invoices in China is strictly controlled by the tax authorities. Pre-approved paper invoices, fapiaos, are provided by the Golden Tax System. It enables the government to track VAT payments and compliance, and it provides proof of the purchase of goods or services.
Fapiaos are produced and distributed by the Chinese State Administration of Tax (SAT), and may be purchased by taxable businesses for use. The tax authorities will determine in advance how many fapiaos a company is entitled to order, and their total value. Companies must produce the approved fapiaos on government supplied printers which are electronically linked to the tax system. This provides the government with a live feed of invoices produced. The tax due on fapiaos must be paid to the tax authorities at month end irrespective of whether the customer has settled the invoices.
Information to be contained on a VAT fapiao includes:
- Seller’s name and business address
- Seller’s tax reference
- Details of supply
- Bank account information
- Sales price in RMB
- VAT calculation
Businesses are required to produce 3 copies of each fapiao:
- Internal copy for the business’ own records
- Customer copy
- Deduction copy for the customer to use for tax deduction
Simplified fapios may be produced for non-VAT registered customers.
Latest Chinese news
Oct 12, 2019
China is likely to announce this week that it will cut its main standard VAT rate from 13% to 10%. It has already reduced its VAT rate from 16% to 13% on 1 April 2019. China's economy is slowing rapid
Mar 4, 2019
China is to cut its standard VAT rate from 16% to 13% in 2019 to help its manufacturers struggling with US tariffs, slowing global demand and a domestic debt overhang.
January 14, 2019
China has raised its VAT registration threshold from 1 January 2019 from CNY30,000 to CNY100,000 for small businesses. The measure is temporary for the next two years.
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