Circular on Implementation of the Invoices Management Methods of the People's Republic of China

Implementation Rules for the Invoice Management Measures of the People's Republic of China

Guo Shui Fa [1993] No. 157

December 28, 1993

Chapter I General Provisions

Article 1 These Implementation Rules have been formulated in accordance with the provisions of Article 44 of the Administrative Measures of the People's Republic of China for Invoices (hereinafter referred to as the Measures).

Article 2 The nationwide standard invoice manufacture supervisory seal is the legal symbol that indicates an invoice is subject to tax authority administration, and the shape, specifications, details and color of the seal shall be determined by the State Administration of Taxation. With the exception of any approval granted by the State Administration of Taxation or by any branch thereof in the various provinces, autonomous regions and municipalities directly under the Central Government or by any tax bureau in the various provinces, autonomous regions and municipalities directly under the Central Government (the State Administration of Taxation, branches of the State Administration of taxation in the various provinces, autonomous regions and municipalities directly under the Central Government and local tax bureaus in the various provinces, autonomous regions and municipalities directly under the Central Government are hereinafter referred to as provincial-level tax authorities) in accordance with their respective responsibilities, invoices shall all be chromatographed with the nationwide standard invoice manufacture supervisory seal.

Article 3 The categories for the classification of invoices shall be determined by tax authorities at or above the provincial level.

Article 4 Invoices shall generally consist of three sheets, the first sheet being the invoice stub to be retained by the invoice issuer for future reference, the second sheet being the invoice itself, to be used by the recipient as the original voucher for paying or receiving money, and the third sheet being the accounts sheet, to be used by the issuer as the original voucher for keeping accounts.
The basic sheets of VAT special invoices shall also include the deduction sheet, to be used by the recipient as a tax deduction voucher.
In addition to VAT special invoices, tax authorities at or above the county (municipality) level may increase or decrease the number of invoice sheets as required and determine their use.

Article 5 The basic details included on invoices shall include the name of the invoice, the alphanumeric code, the number of invoice sheets and their uses, the client's name, the bank and account number, a description of the relevant product or business project, the measurement unit, quantity, unit price, the value in words and figures, the individual who issues the invoice, the date on which the invoice is written, and the name of the unit or individual that writes the invoice.
Where tax is withheld, collected or levied on an agency basis, the invoice details shall include the rate at which tax is withheld, collected or levied on an agency basis and the amount of such tax.
VAT special invoices shall also include the address and tax registration number of the goods purchaser, the rate and amount of VAT, and the name, address and tax registration number of the goods supplier.

Article 6 The standard format for invoices used nationwide shall be determined by the State Administration of Taxation.
The standard format for invoices used within the scope of a particular province, autonomous region or municipality directly under the Central Government shall be determined by the relevant provincial-level tax authority.
The term "invoice format" as used in this Article includes the type of invoice, as well as its purpose, the specific details to be recorded, layout, specifications and scope of use of the various invoice sheets.

Article 7 Units that have a fixed production and management site and complete financial and invoice management systems, and use a large volume of invoices, may apply to print invoices that include the unit's name; where a standard format invoice cannot satisfy its business requirements, a unit may design its own invoice format, but it must seek and obtain approval from the relevant tax authority at or above the county (municipality) level, and the State Administration of Taxation shall determine approval applications relating to VAT special invoices.

Chapter II Printing of Invoices

Article 8 The phrase "the State Administration of Taxation shall determine approval applications relating to VAT special invoices" used in Article 7 of the Measures means that such invoices shall be printed exclusively by enterprises designated by the State Administration of Taxation.

Article 9 Enterprises that print invoices and enterprises that produce special products for anti-counterfeit invoices shall possess the following qualifications:
1. Their equipment and technical standards facilitate invoice printing needs and production needs for special products for anti-counterfeit invoices;
2. They are capable of guaranteeing supplies according to demand from
tax authorities;
3. They have standard enterprise management practices and a strict quality
control system;
4. They have special production workshops, special storage warehouses, and specialized managers;
5. They are capable of strictly abiding by provisions on the printing of
invoices and on the production and management of special products for anti-
counterfeit invoices.

Article 10 Invoice printing permits and permits for the production of special products for anti-counterfeit invoices shall be designed and issued exclusively by the State Administration of Taxation.
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