The new tax policy on invoice issue will take effective on 1^st July 2017 as follows.

• When the purchaser asks for the VAT general invoice from the seller, the purchaser should provide the “unified social credit code” as the tax identification number to the seller;
• When the seller issues the VAT general invoice, the “tax identification number” of the purchaser should be filled in the relevant column.
• Otherwise, the VAT general invoice without the “tax identification number” cannot be regarded as the legal tax proof.
• The content for the VAT general invoice shall be issued based on the actual situation. The detailed product list and service list should be attached to the VAT general invoice and have then affixed with the Fapiao/invoice seal. Such list should be issueded from the tax control machine of the seller.

According to the above legal requirement, you may see as follows what kinds of Fapiao/Invoice cannot be reimbursed after July 2017.

• When you receive a VAT general invoice, you found that there is no “unified social code” on it.
• When you receive a rolled VAT general invoice, it is listed the item name as “office products” but with no detailed list for each product.
• When you receive a VAT general invoice, it is listed the item name as “office products” and has the detailed list for each product, but such detailed list is not printed from the official invoice machine but made by the seller itself.
• When you receive a VAT general invoice for the training meeting matter, however, the detailed for the training meeting fee is not printed by the hotel system but made by the meeting holder itself.
• When you go shopping in the supermarket, you buy food but when issuing the invoice, it said that you buy the office products.
• When you purchase from Party A, but Party A does not issue the invoice to you and introduce Party B to issue the invoice to you.
• You buy nothing but have got the invoice.

Exceptions: although there are the above new requirements for issuing the Fapiao, there are three situation that there is no need to fill in the “unified social credit code”.

• If the purchaser is an individual instead of a company;
• If the purchaser is an non-enterprise such as the governmental authority or a governmental institution;
• If the purchase is an overseas company;

Dongjin comments:

With the implementation of the new VAT invoice requirement, the tax bureau can have an clearer control on the invoice management. It is easily to find any fake transaction.

If you have any questions, please send the email to me.

Ms. Jojo Hu           

TEL: 0086-21-68868335 ext 324 / FAX: 0086-21-68868021

Email: jojohu@shanghaiinvest.com