＂State Taxation Administration of The People’s Republic of China’s Decision on Amending the Detailed Rules for the Implementation of the Measures for the Administration of Invoices in People’s Republi

In order to ensure the effective implementation of the Measures for the Administration of Invoices in People’s Republic of China (PRC) after its promulgation, State Taxation Administration of The People’s Republic of China decided to amend the Detailed Rules for the Implementation of the Measures for the Administration of Invoices in People’s Republic of China (PRC). We are now open to the public for comments, and the public can put forward their opinions by the following ways and means before November 14, 2023:

1. Log on to the website of State Taxation Administration of The People’s Republic of China (website: https://www.chinatax.gov.cn) and enter the "Interactive Communication-Solicitation of Opinions" column in the main menu of the home page to make comments;

2. E-mail: fpssxzyj@163.com;

3. Mail the comments to: Science and Technology Department of State Taxation Administration of The People’s Republic of China Administration, No.68 Zaolinqian Street, Xicheng District, Beijing (postal code: 100053). Please mark the words "Detailed Rules for the Implementation of Invoice Management Measures for comments" on the envelope.

State Administration of Taxation (SAT)

October 16, 2023

Decision of State Taxation Administration of The People’s Republic of China on Amending the Detailed Rules for the Implementation of the Measures for the Administration of Invoices in People’s Republic of China (PRC)

(Draft for Comment)

In order to ensure the effective implementation of the Measures for the Administration of Invoices in People’s Republic of China (PRC) after its promulgation, State Taxation Administration of The People’s Republic of China has decided to make the following amendments to the Detailed Rules for the Implementation of the Measures for the Administration of Invoices in People’s Republic of China (PRC):

One article is added as Article 3: "The electronic invoice mentioned in Article 3 of the Measures refers to the receipt and payment vouchers issued and collected in the form of data messages in accordance with the provisions of the tax authorities on invoice management in the purchase and sale of commodities, provision or acceptance of services and other business activities.

"The legal effect and basic use of electronic invoices are the same as those of paper invoices, and no unit or individual may refuse the legal and compliant use of electronic invoices."

2. One article is added as Article 4: "The tax authorities shall build an electronic invoice service platform, actively promote comprehensive digital electronic invoices, and provide services such as issuance, delivery and inspection for ticket users and individuals."

3. Article 4 is amended as Article 6: "The basic contents of an invoice include: invoice name, invoice code and number, serial number and purpose, customer name, bank and account number, commodity name or business item, unit of measurement, quantity, unit price, amount in words and figures, tax rate (collection rate), tax amount, drawer, invoice date and name (seal) of the invoice issuing unit (individual).

"The tax authorities at or above the provincial level may determine the specific contents of invoices according to the needs of economic activities and invoice management."

4. Article 6 is amended as Article 8: "The tax authorities shall supervise and manage the enterprises that print invoices according to the requirements of government procurement contracts and the management of anti-counterfeiting products for invoices."

5. Article 10 is amended as Article 12: "The tax authorities that supervise the production of invoices shall issue invoices printing notices according to the needs of invoice management and government procurement contracts, and the enterprises that print invoices shall print invoices according to the style, quantity and printing requirements determined by the tax authorities.

"The invoice printing notice shall specify the name of the enterprise that printed the invoice, the name of the ticketing unit, the name of the invoice, the invoice code, the type, the serial number, the specification, the printing color, the printing quantity, the start-stop number, the delivery time and place, etc."

VI. The name of Chapter III is amended as "Collecting Invoices".

VII. Article 13 is amended as Article 15: "The special seal for invoices mentioned in Article 15 of the Measures refers to the seal with the words of its name, unified social credit code or taxpayer identification number and special seal for invoices stamped by the user units and individuals when issuing paper invoices.

"The style of the special invoice seal is determined by State Taxation Administration of The People’s Republic of China."

8. One article is added as Article 17: "The tax authorities shall exercise quota management over the invoiced amount of electronic invoices, and determine the invoiced amount according to factors such as the tax risk degree, tax credit rating and actual operation of the users."

IX. Article 15 is amended as Article 18: "The methods of collection mentioned in Article 15 of the Measures refer to such methods as batch supply, exchanging old materials for new ones or checking old materials for new ones."

Ten, delete sixteenth, eighteenth, twenty-first, twenty-second, twenty-third, thirty-seventh.

11. One article is added as Article 19: "The competent tax authorities may adjust the types, quantity, amount and methods of collecting invoices from ticket-using units and individuals according to the actual business conditions, unless otherwise stipulated by laws and administrative regulations."

12. One article is added as Article 21: "The tax authorities shall, in accordance with the provisions of laws and administrative regulations, establish and improve the invoice data security management system and perform the duties of invoice data security supervision.

"Units and individuals shall carry out invoice data processing activities in accordance with the law to ensure the safety of invoice data, and shall not use invoice data in violation of relevant state regulations, and shall not use invoice data for illegal profit."

XIII. Article 26 is amended as: "Units and individuals who fill out invoices shall issue invoices when business income is recognized, unless otherwise provided by State Taxation Administration of The People’s Republic of China.

"No invoices may be issued without business."

14. One article is added as Article 27: "The amount stipulated in Article 19 of the Measures shall not be changed, including the unit price and quantity."

15. Article 27 is amended as Article 28: "After a paper invoice is issued, if sales are returned, invoicing is wrong, taxable services are suspended, etc., and the invoice needs to be voided, it shall be voided after all copies of the original invoice are recovered and marked’ voided’.

"After issuing a paper invoice, in case of sales return, wrong invoicing, suspension of taxable services, sales discount, etc., if it is necessary to issue a red-ink invoice, it shall recover all the original invoices and indicate the words" red-ink "before issuing a red-ink invoice. If it is impossible to recover all the original invoices, it shall issue a red-ink invoice after obtaining the valid certificate of the other party. "

16. One article is added as Article 29: "After issuing an electronic invoice, in case of sales return, incorrect invoicing, suspension of taxable services, sales discount, etc., a red-ink invoice shall be issued in accordance with the regulations."

XVII. Article 28 is amended as Article 30: "When issuing invoices, units and individuals shall fill them in the order of invoice numbers, with complete items and true contents.

"Paper invoices should be legible, all printed at one time, and the contents are exactly the same, and the invoice seal should be affixed to the invoice seal and the deduction seal."

Eighteen, one article is added as Article 31: "The term" inconsistent with the actual business situation "as mentioned in Article 21 of the Measures refers to one of the following acts:

"(1) Issuing or accepting invoices without buying or selling commodities, providing or accepting services or engaging in other business activities;

"(2) buying and selling commodities, providing or accepting services and engaging in other business activities, but issuing or accepting invoices that are not in line with the actual situation, such as buyers, sellers, commodity names or business items and amounts."

19. One article is added as Article 33: "Units and individuals providing services such as collecting and issuing invoices to clients shall be included in the supervision of tax-related professional services.

"The maximum amount of invoice data stored for providing tax-related services to others shall comply with the relevant provisions of the tax authorities."

20. One article is added as Article 34: "When developing an electronic invoice information system to provide tax-related services such as query, download, storage and use of invoice data for others, it is necessary to sign a service agreement with the client, obtain its explicit authorization, and stipulate the rules and uses of invoice data, and shall not use invoice data beyond the scope of authorization. The development of electronic invoice information system shall conform to the data standards and management regulations of tax authorities. "

21. One article is added as Article 35: "Stealing as mentioned in Articles 23 and 36 of the Measures refers to the act of units and individuals obtaining invoice data through improper means for the purpose of illegal possession.

"Interception refers to the illegal interception or copying and storage of invoice data by units and individuals during the transmission of invoice data.

"Tampering refers to the behavior of units and individuals to change the invoice data by means of forgery.

"Sale refers to the act of selling invoice data by units and individuals for profit.

"Leakage refers to the behavior of units and individuals that cause invoice data to be known by people who should not know or beyond the limited contact range."

22. One article is added as Article 37: "Identity verification mentioned in Article 26 of the Measures means that the tax authorities check the identity information of the agent when collecting, issuing and issuing invoices on behalf of the tax authorities.

"The tax authorities shall, in order to perform their statutory duties, handle the information of ticketing units and individuals, and shall do so in accordance with the authority and procedures prescribed by laws and administrative regulations, and shall not exceed the scope and limits necessary for performing their statutory duties.

"The tax authorities shall keep confidential the information collected and obtained by the ticketing units and individuals according to law."

Twenty-three, one article is added as Article 39: "The tax authorities may extract, transfer, consult and copy the invoice data during the invoice inspection."

Twenty-four, Article 34 is amended as Article 42: "If the tax authorities punish acts that violate the laws and regulations on invoice management according to law, the tax authorities at or above the county level shall decide; If the fine is less than 2,000 yuan, it may be decided by the tax office. "

25. Article 35 is amended as Article 43: "The announcement mentioned in Article 38 of the Measures means that the tax authorities at or above the county level shall announce the taxpayer’s illegal invoices in tax places or news media such as radio, television, newspapers, periodicals and the Internet. The contents of the announcement include: the name of the taxpayer, the unified social credit code or the taxpayer identification number, the place of business, and the specific circumstances of violating the invoice management regulations. "

Twenty-six, one article is added as Article 45: "Units and individuals engaged in production and business activities in violation of the provisions of the Measures, in any of the following circumstances, the tax authorities shall order them to make corrections and may impose a fine of less than 10,000 yuan:

"(a) invoices that should be obtained but not obtained are used for tax deduction, export tax rebate, pre-tax deduction and financial reimbursement with other vouchers other than invoices or self-made vouchers;

"(2) Use invoices that are inconsistent with the actual business conditions for tax deduction, export tax rebate, pre-tax deduction and financial reimbursement."

Twenty-seven, the third amended as fifth, seventh amended as ninth, fourteenth amended as sixteenth, thirty-first amended as thirty-eighth, adding "paper" expression.

In addition, the serial numbers of relevant provisions of the Measures for the Administration of Invoices in People’s Republic of China (PRC) and some provisions of the Detailed Rules for the Implementation of the Measures for the Administration of Invoices in People’s Republic of China (PRC) are adjusted accordingly.

Explanation on the Detailed Rules for the Implementation of the Measures for the Administration of Invoices in People’s Republic of China (PRC) (Draft for Comment)

In order to implement the Opinions of the General Offices of the General Office of the Central Committee of the CPC and the State Council on Further Deepening the Reform of Tax Collection and Management, and ensure the smooth implementation of the newly revised Measures for the Administration of Invoices in People’s Republic of China (PRC) (hereinafter referred to as the Measures) according to the Decision of the State Council on Amending and Abolishing Some Administrative Regulations (Order No.764 of the State Council), State Taxation Administration of The People’s Republic of China has implemented the Detailed Rules for the Administration of Invoices in People’s Republic of China (PRC) (Order No.54 of State Taxation Administration of The People’s Republic of China, 2011, hereinafter referred to as the Detailed Rules).

First, the overall consideration of modification

In order to ensure the effective implementation of the Measures, the Detailed Rules for Implementation are systematically revised and improved in combination with the Measures. This revision mainly improves the invoice management system, strengthens the protection of taxpayers’ legitimate rights and interests, and provides institutional guarantee for deepening the reform of tax collection and management and promoting the electronization of invoices.

Second, the basic principles of revision

Adhere to the problem-oriented, practice-oriented, based on the "Measures", combined with the practice of tax collection and management, to optimize and adjust.

(a) according to the "measures" to modify the content, enhance the operability. As a supporting regulation of the Measures, the detailed rules for implementation are revised synchronously under the premise of the revision of the Measures, and the concepts such as "electronic invoice" are clarified, and the revised contents of the Measures are refined and supplemented. Distinguish the existing provisions that only apply to paper invoices to ensure the effective implementation of the Measures.

(2) Respond to the demands of taxpayers and enhance convenience. In view of the new situations and new problems such as invoice collection methods, inspection, download and data security that ticket users and individuals are concerned about, this revision will be clarified and solved to better serve the development of market players and help continuously optimize the business environment.

(3) standardize the exercise of powers and responsibilities of tax authorities and enhance their applicability. Clarify the rights and responsibilities of tax authorities in determining the amount of invoices and checking invoice data, upgrade practical experience to regulations, and standardize and optimize tax law enforcement.

Third, the main contents of the revision

Compared with the Detailed Rules for Implementation, the Detailed Rules for Implementation (Draft for Comment) has been revised from 38 articles to 46 articles, including 14 new articles, 6 deleted articles and 17 revised articles. The revised contents mainly include:

(1) About electronic invoices. In order to meet the needs of the current electronic invoice reform, the basic definition, quota management, red-ink invoice and other specific contents of electronic invoice are clarified, and the legal effect and basic use of electronic invoice are emphasized as the same as that of paper invoice. Clarify the basic management regulations for the tax authorities to build an electronic invoice service platform and the third party to develop an electronic invoice information system.

(2) About the security of invoice data. Refine the specific circumstances of the prohibited acts of "stealing, intercepting, tampering, selling and leaking" invoice data, clarify the responsibilities and requirements of tax authorities in establishing and improving the invoice data security management system and identity verification, and increase the provisions and confidentiality obligations of tax authorities in handling information according to laws and regulations.

(3) About the connection with the superior law. Connect with the Administrative Punishment Law of the People’s Republic of China and other relevant laws, regulations and systems, make necessary amendments to the relevant provisions on penalties for acts violating the laws and regulations on invoice management, and refine the penalties for not obtaining and using invoices according to regulations.

(4) Printing of invoices. In line with the "People’s Republic of China (PRC) Government Procurement Law", according to the requirement that "enterprises print invoices" is a government procurement item, it is emphasized that invoice printing enterprises should print invoices according to the style, quantity and printing requirements determined by the tax authorities, and it is clear that the tax authorities should supervise and manage invoice printing enterprises according to the government procurement contract and the management requirements of invoice anti-counterfeiting products.

(5) On the receipt of invoices. In order to better serve the market players and meet the demand for invoice use, it is clear that the tax authorities can adjust the types, quantities, quotas and methods of receiving invoices from ticket-using units and individuals according to actual business conditions. In order to reduce the burden of taxpayers’ invoice collection, the relevant clauses such as invoice collection and purchase book, invoice cost, invoice guarantor and deposit are deleted.

(6) About the issuance of invoices. In order to standardize the issuance of invoices, it is clear that the "no change in the amount" stipulated in the Measures includes the unit price and quantity of the calculated amount; Improve the specific regulations on the management of invalid red-ink invoices, and emphasize the need to issue red-ink invoices. All original invoices shall be recovered and marked with the word "red-ink" or valid certificates from the other party shall be obtained. Refine the provisions of the Measures on false invoicing and clarify the specific situation of "inconsistent with the actual business situation".