The State Administration of Taxation ("SAT") released on September 25 the Circular on Issues concerning the Issuance of Red-lettered Value-added Tax Special Invoices for Freight Transport Services during the Test Running of the Consolidated Value-added Tax Control System (the "Circular").
The Circular clarifies that, during the test running of the system, where an actual receiver or carrier applies for the issuance of a red-lettered value-added tax (VAT) special invoice for freight transport services, the competent tax authority shall issue the Information Form of the Issuance of Red-lettered Value-added Tax Special Invoices for Freight Transport Services via the VAT control system instead of issuing the Notice of the Issuance of Red-lettered Value-added Tax Special Invoices for Freight Transport Services.