Circular of the State Administration of Taxation on Issues concerning the Handling of Falsely Issued Special Invoices for Value-Added Tax Obtained by Taxpayers

Circular of the State Administration of Taxation on Issues concerning the Handling of Falsely Issued Special Invoices for Value-Added Tax Obtained by Taxpayers

Guo Shui Fa [1997] No.134

August 8, 1997

In recent days, some local offices of the State Administration of Taxation inquired about the methods to deal with the falsely issued special invoices for value-added tax obtained by taxpayers (hereinafter referred to as the "Special Invoices"). Relevant matters are hereby clarified as follows after deliberation:

I. Where the drawee, by using the Special Invoices falsely issued by others, declares for tax deductibles to the tax authorities for tax evasion, the tax authorities shall recover the tax payable in accordance with Law of the People's Republic of China on the Administration of Tax Levying and relevant provisions, and impose a fine of less than five times the amount of tax evasion; where the input tax is higher than the output tax, the to-be-offset input tax amount shall be deducted.
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