Announcement of the State Administration of Taxation on Issues concerning the Simplification of the Procedures for the Receiving and Use of Value-added Tax Invoices

Announcement of the State Administration of Taxation on Issues concerning the Simplification of the Procedures for the Receiving and Use of Value-added Tax Invoices

Announcement of the State Administration of Taxation 2014 No. 19

March 24, 2014

In order to practically transform the work functions of taxation authorities, further improve tax collection services and raise the efficiency of handling taxation matters, the State Administration of Taxation has launched the "Project of Facilitating the People in Processing Taxation Matters" to comprehensively speed up the entire process of handling taxation matters and facilitate the tax experience of honest and law-abiding taxpayers. This Announcement is hereby made on issues concerning the simplification of the procedures for the receipt and use of value-added tax ("VAT") invoices:

Article 1 Simplify the formalities that apply to taxpayers in respect of the receipt and use of VAT invoices
The requirement for manual verification of used VAT invoices (including special VAT invoices, freight industry special VAT invoices, ordinary VAT invoices, and uniform motor vehicle sales invoices, hereinafter the same) is abolished. Taxation authorities shall use the tax filing data in the ordinary VAT taxpayer (hereinafter referred to as the "Ordinary Taxpayer") invoice tax control system to verify used VAT invoices electronically.

Article 2 Simplify the examination and approval formalities for special invoices
Responsible taxation authorities are not required to conduct on-site inspections in advance where Ordinary Taxpayers apply for special invoices (including special VAT invoices and freight industry special VAT invoices, hereinafter the same) whose invoicing amount does not exceed CNY 100,000.
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