China adopts the system of “control tax-collection by invoices”, in other words, china controls tax payment by means of tracking official invoices. China invoices (Fapiao) have the same templates and must apply from the tax bureau.
China Tax Invoice (Fapiao) can be divided into two types of Fapiao--- General VAT Invoice (Fapiao) and Special VAT Invoice (Fapiao). Only the latter can be used for tax deduction and can only be applied from the general tax payer (status). Each establishment will be Small-Scale Taxpayer when it is established and can be upgraded to General VAT Taxpayer.
China Invoice is an indispensable part of tax compliance in China. We offer total accounting, bookkeeping, financial statement and tax compliance support services to safeguard your China expansion with a professional online team and quick-responsed local team to manage your Chinese Invoice (Fapiao).
Should you be interested in our services, you can email to us and we will get in touch with you as soon as we can.
Given the importance and Chinese characteristics of China invoice (“Fapiao” in Chinese), nearly all foreign enterprises have questions regarding China’s Invoice (Fapiao) after they established their WFOEs or Joint Ventures. The latest VAT (Value Added Tax) Invoice reform in China makes the invoice system in China harder to understand.
The Logic behind China Invoice (Fapiao)
China adopts the system of “control tax-collection by invoices”, in other words, china controls tax payment by means of tracking official invoices. China invoices (Fapiao) have the same templates and must apply from the tax bureau. Take VAT special invoice for instance, each invoice has verifiable invoice code and can only be printed by the billing machine bought from the tax bureau. Furthermore, the tax deduction application process and China tax rate ratify includes the invoice verification by the tax office networking system.
China Invoice (Fapiao) Definition & Application Range
Fapiao is a Chinese characteristic, which does not exist outside of China. In China, all business transactions are required by law to be recorded on an official receipt, which called Invoice (“Fapiao” in Chinese). Invoice refers to business payment vouchers issued and collected in the buying and selling commodities, providing or accepting services as well as engaging in other business activities. China invoice (Fapiao) is the original basis of accounting as an original supporting evidence of cost, expense or income and the important basis of audit institutions and the tax authority inspection.
Fapiao must be printed on official receipt applied from the tax authorities, otherwise the business transaction will not be recognized by the tax authority. Hence, the company will be unable to use the expense for tax refund or deduction. Inside the company, an employee must submit official Fapiao under company name to declare expenses for reimbursement. Please aware each company is also required by law to implement business within business scope, so as the issue of fapiao.
Please noted that for an employee should submit the official China invoice (Fapiao) to claim payment or refund. For example, the travel expense.
China Invoice (Fapiao) Sample
China Invoice (Fapiao) Types
There are two types of taxpayers in China:
Fapiao (Invoice) can be classified into two categories:
China Invoice (Fapiao) Sample
The invoice content includes: invoice head, invoice code, sheets of invoice, usage, the customer's name, bank account, business (product) name, units of measurement, quantity, unit price, amount, amount in capital and small letter, handler name, company seal, billing date etc. The value added tax special invoices used by the companies that implement the value-added tax should also be classified into categories of taxes, tax rates, tax amount and so on.
Generally, the basic couplet of special VAT invoices is a total of three sheets, which are used as follows:
The first sheet is the bookkeeping sheet, which is the main voucher for the sales and VAT on sales, namely the seller's accounting voucher.
The second sheet is tax deduction sheet, the proof of the amount of input tax calculated on the buyer. The buyer should number, bind, send tax authorities to check after receiving this sheet according to the provisions of the tax authority.
The third sheet is the invoice sheet, invoice receiver will take this original voucher for payment or collection. It belongs to the business voucher, namely the buyer's accounting certificate.
And the basic sheet of the general invoice of value added tax has 2 sheets, namely bookkeeping sheet and invoice sheet, be less than VAT special invoice deduction sheet.
China Fapiao (Invoice) Code
China Invoice (Fapiao) is a row number in the upper right corner of the China invoice (Fapiao), which bears the method of the authenticity of the invoice. The Special VAT Invoice has 10 digits while the General VAT Invoice has 12.
The Significance of China Invoice (Fapiao)
China Invoice (Fapiao) Application Requirements
China Invoice Issue Services Include:
Facts
China Tax Invoice (Fapiao) can be divided into two types of Fapiao--- General VAT Invoice (Fapiao) and Special VAT Invoice (Fapiao). Only the latter can be used for tax deduction and can only be applied from the general tax payer (status). Each establishment will be Small-Scale Taxpayer when it is established and can be upgraded to General VAT Taxpayer.
China Invoice is an indispensable part of tax compliance in China. We offer total accounting, bookkeeping, financial statement and tax compliance support services to safeguard your China expansion with a professional online team and quick-responsed local team to manage your Chinese Invoice (Fapiao).
Should you be interested in our services, you can email to us and we will get in touch with you as soon as we can.
Overview of China Invoice (Fapiao)
Given the importance and Chinese characteristics of China invoice (“Fapiao” in Chinese), nearly all foreign enterprises have questions regarding China’s Invoice (Fapiao) after they established their WFOEs or Joint Ventures. The latest VAT (Value Added Tax) Invoice reform in China makes the invoice system in China harder to understand.
The Logic behind China Invoice (Fapiao)
China adopts the system of “control tax-collection by invoices”, in other words, china controls tax payment by means of tracking official invoices. China invoices (Fapiao) have the same templates and must apply from the tax bureau. Take VAT special invoice for instance, each invoice has verifiable invoice code and can only be printed by the billing machine bought from the tax bureau. Furthermore, the tax deduction application process and China tax rate ratify includes the invoice verification by the tax office networking system.
China Invoice (Fapiao) Definition & Application Range
Fapiao is a Chinese characteristic, which does not exist outside of China. In China, all business transactions are required by law to be recorded on an official receipt, which called Invoice (“Fapiao” in Chinese). Invoice refers to business payment vouchers issued and collected in the buying and selling commodities, providing or accepting services as well as engaging in other business activities. China invoice (Fapiao) is the original basis of accounting as an original supporting evidence of cost, expense or income and the important basis of audit institutions and the tax authority inspection.
Fapiao must be printed on official receipt applied from the tax authorities, otherwise the business transaction will not be recognized by the tax authority. Hence, the company will be unable to use the expense for tax refund or deduction. Inside the company, an employee must submit official Fapiao under company name to declare expenses for reimbursement. Please aware each company is also required by law to implement business within business scope, so as the issue of fapiao.
Please noted that for an employee should submit the official China invoice (Fapiao) to claim payment or refund. For example, the travel expense.
China Invoice (Fapiao) Sample
China Invoice (Fapiao) Types, Fapiao Sample and Fapiao Code
China Invoice (Fapiao) Types
There are two types of taxpayers in China:
- Small-scale VAT Taxpayer
- General VAT Taxpayer
Fapiao (Invoice) can be classified into two categories:
- General VAT Fapiao (Invoice) – General VAT Fapiao (Invoice) can be applied under small-scale VAT taxpayer and general VAT taxpayer.
- Special VAT Fapiao (Invoice) – This type can be used for tax deduction and can merely applied under the General VAT Taxpayer status.
China Invoice (Fapiao) Sample
The invoice content includes: invoice head, invoice code, sheets of invoice, usage, the customer's name, bank account, business (product) name, units of measurement, quantity, unit price, amount, amount in capital and small letter, handler name, company seal, billing date etc. The value added tax special invoices used by the companies that implement the value-added tax should also be classified into categories of taxes, tax rates, tax amount and so on.
Generally, the basic couplet of special VAT invoices is a total of three sheets, which are used as follows:
The first sheet is the bookkeeping sheet, which is the main voucher for the sales and VAT on sales, namely the seller's accounting voucher.
The second sheet is tax deduction sheet, the proof of the amount of input tax calculated on the buyer. The buyer should number, bind, send tax authorities to check after receiving this sheet according to the provisions of the tax authority.
The third sheet is the invoice sheet, invoice receiver will take this original voucher for payment or collection. It belongs to the business voucher, namely the buyer's accounting certificate.
And the basic sheet of the general invoice of value added tax has 2 sheets, namely bookkeeping sheet and invoice sheet, be less than VAT special invoice deduction sheet.
China Fapiao (Invoice) Code
China Invoice (Fapiao) is a row number in the upper right corner of the China invoice (Fapiao), which bears the method of the authenticity of the invoice. The Special VAT Invoice has 10 digits while the General VAT Invoice has 12.
China Invoice (Fapiao) Services
The Significance of China Invoice (Fapiao)
- China Invoice is an indispensable part of tax compliance in China;
- China Invoice (Fapiao) has the characteristics of legality, authenticity, unity and timeliness, which is one of the most basic accounting evidences;
- China Invoice (Fapiao) is the carrier of the content of economic activities, which is an important tool for financial management;
- China Invoice is an important basis for tax authorities to control tax source and collect tax;
- China Invoice is an important means for the state to monitor economic activities, maintain economic order and protect the safety of state property;
China Invoice (Fapiao) Application Requirements
- Form of Increasing the Number of Approved Invoices
- Tax Registration Certificate
- Business License
- Legal Person Identity Card
- Tax Application Form
- Company Seal
- Enterprise Income Tax Verification Collection (3)
- Application Letter
- Financial Staff's Identity Card
- Financial Staff's Accounting Certificate
- Tax Payers' Registration Form
- Corporate Income Tax Check (1 sheet)
China Invoice Issue Services Include:
- China Invoice Application
- Buying and Keeping of China Invoice Billing Machine
- China Invoice Issue by Accountant
- China Invoice Certify
- Small-scale Taxpayer Application
- General Taxpayer Application
- China Invoice Cancellation
Facts
- We offer total accounting, bookkeeping, financial statement and tax compliance support services to safeguard your China expansion.
- We adhere to the “Internet +” philosophy to create a most convenient business service platform for our clients.
- We have a professional online team and quick-responsed local team to manage your Chinese Invoice (Fapiao) to satisfy business expanding in China.
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