Circular of the State Administration of Taxation on Implementation of the Administrative Measures of the People's Republic of China for Invoices

Circular of the State Administration of Taxation on Implementation of the Administrative Measures of the People's Republic of China for Invoices
Circular of the State Administration of Taxation on Implementation of the Administrative Measures of the People's Republic of China for Invoices

Guo Shui Fa [1993] No. 157

December 28, 1993

The tax bureaus of all provinces, autonomous regions and municipalities directly under the Central Government, tax bureaus of all cities specifically designated under State plan, and the tax bureaus of the cities of Shenyang, Changchun, Harbin, Nanjing, Wuhan, Chengdu, Xi'an and Guangzhou,

With the approval by the State Council, the Ministry of Finance promulgated on December 23, 1993 the Administrative Measures of the People's Republic of China for Invoices (hereinafter referred to as the Measures). In order to make the Measures more operational and facilitate the implementation and publicity thereof, in light of the authority granted by the Measures, the State Administration of Taxation has formulated the Detailed Rules for the Implementation of the Administrative Measures of the People's Republic of China for Invoices (hereinafter referred to as the Detailed Rules), and has compiled the Publicity Outline for the Administrative Measures of the People's Republic of China for Invoices (hereinafter referred to as the Publicity Outline). The Measures, along with the Detailed Rules and Publicity Outline, are hereby issued to you and issues concerning the implementation of the Measures are hereby notified as follows:

I. Enhancing understanding and strengthening leadership. The Measures are the first set of administrative regulations of China on the management of invoices published with the approval of the State Council, the promulgation of which marks a new stage in the law-based standardized management of invoices in China. Through the Measures, the current invoice management system of China is unified, functions of tax authorities over invoice management strengthened, the procedures for invoice management standardized, punishment of invoice-related offenses enhanced, and regulation of the exercise by the tax authorities of their functions intensified and the rights and interests of entities and individuals who print and use invoices safeguarded, which not only helps to further improve the legal system for tax collection and management, effectively strengthen invoice management and bring into full play the functions of taxation supervision and control, but also helps maintain the market economic order, promote fair competition, and boost reform, opening up and the sustained, rapid and sound development of economic construction. Therefore, tax authorities at all levels and employees thereof shall fully appreciate the significance of the promulgation of the Measures in strengthening tax collection and management and improving invoice management and establishing the socialist market economic system of China. Local taxation authorities shall attach due importance to the implementation of the Measures by improving the leadership over the implementation, formulating detailed opinions on and measures for the implementation, reporting to CPC (Communist Party and China) committees and government leadership concerned for the purposes of coordinating efforts of all parities concerned and ensuring the smooth proceeding of the implementation.

II. Efforts shall be made in the study, training and publicity on the Measures and Detailed Rules. Local tax authorities shall properly organize the study, training and publicity of the Measures and Detailed Rules. In line with the arrangements by the State Administration of Taxation, in accordance with the Law on Tax Collection and Management and in light of the study, training and publicity of the new tax system, local tax authorities shall hold well-targeted training workshops on invoice, organize the employees of the tax authorities and entities and individuals who engage in the printing and use of invoices to effectively study the Measures and Detailed Rules, correctly appreciate the essence thereof, clearly define their respective rights and duties and make proper preparation for the implementation of the Measures and Detailed Rules. Furthermore, efforts shall be made to conduct extensive and intensive publicity and educational activities through such publicity media as radio, TV, newspapers and magazines, so as to increase understanding by the general public of regulations on invoice management, strengthen the sense of the public of law-based use of invoices, intensify social supervision over the invoice, thereby laying a solid mass foundation for improving the quality of invoice management.

III. A sound invoice management system shall be established. In accordance with related stipulations of the Measures and Detailed Rules, tax authorities at all levels shall, in light of actual conditions, conduct a conscientious review of existing invoice management systems and abolish or reform such systems or formulate new systems, as the case may be, thereby establishing and improving management systems related to the printing, production cost and management fees of invoices, security deposit for invoices, and the various management systems related to the purchase, use and keeping of invoices, so as to form a comprehensive legal system for invoice management, so that there will be proper rules and regulations governing every links of invoice management.

IV. Management of invoice printing shall be enhanced and anti-forgery measures shall be improved. Printers of invoices shall be chosen in accordance with the qualifications and standards set in the Measures and Detailed Rules, the principles of centralization and unification through competition and bidding. Necessary supervision and inspection rules shall be formulated for the printers so chosen. Qualifications of invoice-printers that have printing accidents yet fail to adopt active corrective measures shall be revoked in a timely manner, so as to ensure the quality and supply of invoices. Furthermore, to combat such negative impact of rampant forgery of invoice on economic order and social morality, the latest anti-forgery technologies and equipments shall be adopted and unified anti-forgery measures shall be adopted nationwide so as to improve the comprehensive anti-forgery capabilities and reduce and eliminate the adverse effects of fake invoices.

V. Close cooperation among all departments concerned shall be promoted so as to intensify the targeted combat against serial invoice-related offenses. The promulgation of the Measures and Detailed Rules has provided a legal basis for further efforts against invoice-related offenses. Local tax authorities shall, while enhancing the supervision and examination of various links of the purchase, reception, use and keeping of invoices, lose no time in enhancing the coordination and collaboration between departments concerned such as public security and procuratorial departments and law courts, and administrative departments for industry and commerce, make targeted efforts in key regions against criminal activities such as unauthorized printing, sales, illegal trade and forgery of invoices. Serious cases that constitute criminal offense shall be timely transferred to judicial organization for prosecution, so as to ensure the smooth implementation of the tax withholding system under which VAT will be clearly noted in accordance with the invoices effective on January 1 of next year, to promote the correct implementation of the Measures and to further improve the market order.

VI. On the smooth transition between old and new regulations. In line with the stipulations of the Measures and Detailed Rules, the Interim Measures for the Management of the Invoices (hereinafter referred to as the Original Measures) promulgated by the Ministry of Finance on August 19, 1986 and the Interim Regulations on the Management of Invoices Related to Foreign-Funded Enterprises and Foreign Enterprises (hereinafter referred to as the Original Regulations) promulgated by the former State Bureau of Taxation on December 27, 1991, shall be abolished as of the day of the publication of the Measures.
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