Invoice Form

An Invoice Form is an official document issued by a seller to a buyer, requesting payment for goods or services provided. It serves as proof of a commercial transaction and is essential for accounting, taxation, and legal compliance. In China, invoices are particularly important for Value-Added Tax (VAT) reporting and corporate tax filings. Businesses must issue invoices that meet specific formatting and content requirements to ensure compliance with local laws. There are different types of invoices in China, including general invoices (普通发票) and special VAT invoices (增值税专用发票). Special VAT invoices are primarily used for tax deduction purposes, whereas general invoices are used for non-tax-deductible transactions.

Our Invoice Form is structured to comply with Chinese regulations and includes the following key clauses:

All businesses selling goods or providing services in China must issue invoices, including companies, freelancers, and service providers. The type of invoice depends on the taxpayer status: General VAT taxpayers must issue special VAT invoices, while Small-Scale VAT taxpayers and non-VAT-registered businesses issue general invoices (fapiao). Proper invoice issuance ensures tax compliance and transparency in business transactions.

Foreign businesses operating in China must also adhere to local invoice regulations. Failure to issue proper invoices can result in tax penalties, fines, or legal disputes with tax authorities. Companies should ensure they follow correct invoicing procedures to avoid financial or legal risks.For official guidance on invoicing rules in China, visit the State Taxation Administration of China.

A fapiao (发票) is an official, government-regulated invoice issued by businesses in China under the supervision of the State Tax Administration (STA). Unlike regular invoices, which are used primarily for record-keeping, fapiao serve as legal proof of a transaction for tax reporting and compliance purposes. Every business operating in China is required to issue fapiao for taxable transactions, ensuring transparency and proper tax collection. The fapiao system plays a crucial role in China’s tax framework, helping authorities monitor business activities and prevent tax evasion.

There are two main types of fapiao: special VAT fapiao and general VAT fapiao. Special VAT fapiao are primarily used for business-to-business (B2B) transactions and allow buyers to claim value-added tax (VAT) deductions. This makes them essential for companies that need to offset input taxes. On the other hand, general VAT fapiao are issued for transactions that do not qualify for VAT deductions, such as retail sales and consumer purchases. The type of fapiao issued depends on the nature of the transaction and whether tax deductions are applicable.

Fapiao are crucial for both businesses and individuals, as they serve as proof of expenditure, facilitate tax compliance, and are often required for reimbursements. Companies must ensure proper fapiao issuance and management to avoid tax penalties and maintain compliance with Chinese tax regulations. Understanding how to request and verify a fapiao is essential for anyone conducting business in China.

Yes, electronic invoices (电子发票) are widely accepted in China, as the government has promoted digital invoicing to enhance tax compliance and efficiency. Businesses use the Golden Tax System (金税系统) to issue e-fapiao, allowing real-time tax reporting and reducing the risks of tax fraud. Electronic invoices are legally recognized and can be used for various transactions, including reimbursements and accounting purposes.

To be valid, electronic invoices must comply with the regulations set by the State Taxation Administration (STA). They must include a unique invoice code, be digitally signed, and be stored securely for tax auditing purposes. Businesses and consumers should verify the authenticity of e-fapiao through the official STA platform.

In China, VAT rates vary depending on the type of goods or services provided. The following table outlines the applicable VAT rates for different industries:

It is essential for businesses to apply the correct VAT rate to ensure compliance with Chinese tax regulations.

According to Chinese tax regulations, businesses must retain invoices for at least 10 years. Proper invoice management is essential for tax audits, financial reporting, and legal compliance. Failure to maintain these records may result in penalties or difficulties during inspections by tax authorities.

Businesses can keep digital copies of invoices as long as they ensure secure storage and easy accessibility for tax authorities. Implementing reliable backup solutions and document management systems is crucial to compliance.

To claim a VAT refund in China, businesses must obtain a special VAT fapiao from the seller. This invoice must be registered in the Golden Tax System, which is the central tax control system used by the Chinese tax authorities. Once registered, businesses can submit the VAT invoice along with supporting documents such as contracts and payment receipts to the tax authorities.

It is crucial for businesses to ensure that all invoices are correct and in compliance with tax regulations. Any errors or discrepancies in the submitted invoices can lead to delays in receiving VAT refunds and potential financial losses. Ensuring accurate record-keeping and proper submission of all required documents will help expedite the refund process and maintain compliance. For further guidance, refer to the State Taxation Administration of China.

Issuing incorrect or fraudulent invoices in China can result in serious legal consequences, including substantial fines, tax audits, and criminal charges. Common violations include issuing fake invoices (虚开发票), incorrectly calculating VAT, and using unauthorized invoice templates. These actions undermine the integrity of financial reporting and tax compliance.

To avoid these risks, businesses must ensure that all invoices comply with the regulations set forth by the State Taxation Administration (STA). Companies should use only authorized invoicing software and ensure their invoices are properly recorded and issued according to official guidelines. By adhering to these standards, businesses can protect themselves from legal and financial repercussions.

Invoices are a fundamental part of business transactions and tax compliance in China. Understanding their structure, legal requirements, and best practices helps businesses avoid penalties, maintain financial transparency, and ensure smooth operations. Themis Partner provides a fully compliant, professionally drafted Invoice Form that meets Chinese tax and business regulations. Download the template today in English and Mandarin to streamline your invoicing process with ease and confidence.