Circular of the State Administration of Taxation on Revising the Provisions on the Use of Special Invoices for Value-Added Tax
Circular of the State Administration of Taxation on Revising the Provisions on the Use of Special Invoices for Value-Added Tax
Circular of the State Administration of Taxation on Revising the Provisions on the Use of Special Invoices for Value-Added Tax
Guo Shui Fa [2006] No. 156
October 17, 2006
The state tax authorities of all provinces, autonomous regions, municipalities directly under the Central Government, and cities under separate state planning:
In order to meet the administration requirements for Special Invoices for Value-Added Tax, regulate the use of Special invoices for value-added tax, further intensify the VAT collection and administration, and based on the comprehensive collection of suggestions , SAT has revised the existing < Provisions on the Use of Special Invoices for Value-Added Tax >. Now we print and distribute to you these provisions after the revision, please implement them from 1st Jan 2007.
All levels of tax authorities shall do a good job on the promotion, strengthen the training for tax officials and taxpayers, and ensure that these new provisions will be implemented thoroughly. If there are any problems arising during the implementation, please timely report to SAT (Administration Department on Turnover Tax).
Attached: Provisions on the Use of Special Invoices for Value-Added Tax
Article 1 In order to intensify the VAT collection and administration, regulate the use of Special invoices for value-added tax (hereinafter referred to as special invoices), pursuant to the < Interim Regulations of the People's Republic of China on Value-added Tax > and its detailed implementation rules, as well as the < Law of the People's Republic of China on the Administration of Tax Levying > and its detailed implementation rules, these provisions are promulgated.
Article 2 The special invoices refer to the invoices issued by the VAT general taxpayers (hereinafter referred to as general taxpayers) when selling goods or providing taxable services, and these are also the vouchers that the purchasers who paid the VAT can use to credit against the output VAT according to the relevant VAT regulations.
Article 3 Any general taxpayer shall use the special invoice through the VAT modular system (hereinafter referred to as modular system). The use shall include the purchase, issue, cancellation, verification of paper special invoices and other relevant electronic data.
The modular system mentioned in these provisions refer to the computer administration system which will use the special equipments and common equipments, and apply with the numeric password and electronic memory technology for the administration of the special invoice, and this is promoted after the agreement from State Council.
The special equipments mentioned in these provisions refer to the golden tax card, IC card, card reader and other equipments.
The common equipments mentioned in these provisions refer to the computer, printer, scan equipment and other equipments.
Article 4 The special invoice shall be made up of the basic pages or the basic pages plus other additional pages. The basic pages shall include three pages: the invoice page, the deduction page and the accounting page. The invoice page is used by the purchaser as accounting evidence for recording the purchase cost and input VAT; the deduction page is used by the purchaser as evidence for verification with the governing tax authorities and will be kept for future reference; the accounting page is used by the seller as evidence for recording the sales income and the output VAT. The usages of the other additional pages shall be decided by the general taxpayer itself.
Article 5 The special invoices shall adopt the maximum limit administration for issuing special invoices. The maximum limit shall be the maximum amount of the total sales in a single special invoice.
The general taxpayer shall apply for the maximum limit for issuing special invoices, and tax authorities shall check and approve the limit according to the regulations. The tax authorities at the county or district level shall be responsible for the approval of the maximum limit with RMB 100,000.00 or less; tax authorities at the local or municipality level shall be responsible to approve the maximum limit within RMB 1 million; tax authorities at the province level shall be responsible to approve the maximum limit within RMB10 million or more. The tax authorities at the county or district level shall be responsible for the detailed issuance for the modular system.
Relevant tax authorities shall conduct on-site visit and investigation when checking and approving such maximum limit. For the maximum limit with RMB 100,000.00 or less, the tax authorities at the county or district level shall designate persons to conduct the on-site visit and investigation; for the maximum limit within RMB 1 million, the tax authorities at the local or municipality level shall designate persons to conduct the on site visit and investigation; for the maximum limit within RMB 10 millions or more, the tax authorities at the local or municipality level shall designate persons to conduct the on-site visit and investigation and report the investigation information to the provincial tax authorities for check and approval.
When applying for the maximum limit, the general taxpayer should complete and submit the < Application Form of Maximum limit for issuing Special Invoices for Value-Added Tax> (attachment 1)
Article 6 After purchasing the special equipments, the general taxpayer should bring the < Application Form of Maximum limit for Issuing Special Invoices for Value-Added Tax > and < Invoice Purchase Book > to the governing tax authorities to proceed with the initial issuance.
Initial issuance under these provisions shall refer to the actions that the governing tax authorities will take to input the taxpayer's following information into the blank golden tax card and IC Card.
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