Measures of People’s Republic of China (PRC) Municipality on Invoice Management

Notes to the State Council Order No.764 of People’s Republic of China (PRC)’s invoice management measures: (On December 12, 1993, the State Council approved the issuance of Order No.6 of the Ministry of Finance on December 23, 1993, which was first revised according to the Decision of the State Council on Amending the Measures for People’s Republic of China (PRC)’s Invoice Management on December 20, 2010 and second revised according to the Decision of the State Council on Amending Some Administrative Regulations on March 2, 2019. According to the Third Revision of the Decision of the State Council on Amending and Abolishing Some Administrative Regulations on July 20, 2023) Chapter I General Provisions Article 1 In order to strengthen invoice management and financial supervision, safeguard national tax revenue and maintain economic order, these measures are formulated in accordance with the Law of People’s Republic of China (PRC) on Tax Collection and Management. Article 2 Units and individuals that print, collect, issue, obtain, keep and hand in invoices within the territory of People’s Republic of China (PRC) (hereinafter referred to as units and individuals that print and use invoices) must abide by these Measures. Article 3 The term "invoice" as mentioned in these Measures refers to the receipt and payment vouchers issued and collected during the purchase and sale of commodities, the provision or acceptance of services and other business activities. Invoice includes paper invoice and electronic invoice. Electronic invoices and paper invoices have the same legal effect. The state actively promotes the use of electronic invoices. Article 4 The management of invoices shall adhere to and strengthen the leadership of the Party and serve the economic and social development. The competent tax authorities in the State Council are responsible for invoice management throughout the country.The tax authorities of provinces, autonomous regions and municipalities directly under the Central Government shall, according to their duties, do a good job in invoice management within their respective administrative areas. Finance, auditing, market supervision and management, public security and other relevant departments shall, within the scope of their respective duties, cooperate with the tax authorities to do a good job in invoice management. Article 5 Specific measures for the administration of the types, copies, contents, coding rules, data standards and scope of use of invoices shall be formulated by the competent tax authorities of the State Council. Article 6 Any unit or individual may report acts that violate the laws and regulations on invoice management. The tax authorities shall keep confidential the informer and reward him as appropriate. Chapter II Printing of Invoices Article 7 Special invoices for value-added tax shall be printed by enterprises determined by the competent tax authorities of the State Council; Other invoices shall be printed by enterprises determined by the tax authorities of provinces, autonomous regions and municipalities directly under the Central Government in accordance with the provisions of the competent tax authorities of the State Council. It is forbidden to print, forge or alter invoices without permission. Article 8 An enterprise that prints invoices shall meet the following conditions: (1) Obtaining a printing business license and a business license; (two) the equipment and technical level can meet the needs of printing invoices; (three) a sound financial system and strict quality supervision, safety management and confidentiality system. The tax authorities shall determine the enterprises that print invoices in accordance with the relevant provisions of government procurement. Article 9 When printing invoices, the national unified anti-counterfeiting special products for invoices determined by the competent tax authorities of the State Council shall be used. It is prohibited to illegally manufacture special anti-counterfeiting products for invoices. Article 10 Invoices shall be overprinted with the unified national invoice producer seal.The style of the unified national invoice producer seal and the requirements for invoice layout printing shall be stipulated by the competent tax department of the State Council. The invoice producer seal shall be made by the tax authorities of provinces, autonomous regions and municipalities directly under the Central Government. It is forbidden to forge the seal of invoice producer. The invoice shall be changed irregularly. Article 11 Enterprises that print invoices shall, in accordance with the unified provisions of the tax authorities, establish invoice printing management systems and storage measures. The use and management of invoice producer seal and invoice anti-counterfeiting special products shall be subject to the system of special person in charge. Article 12 An enterprise that prints invoices must print invoices in the style and quantity determined by the tax authorities. Article 13 Invoices shall be printed in Chinese. Invoices in ethnic autonomous areas may be printed with a common local national language. If there is a practical need, it can also be printed in both Chinese and foreign languages. Article 14 Invoices used by units and individuals in provinces, autonomous regions and municipalities directly under the Central Government shall be printed in the provinces, autonomous regions and municipalities directly under the Central Government, except for special VAT invoices; If it is really necessary to print in other provinces, autonomous regions and municipalities directly under the central government, the tax authorities of the provinces, autonomous regions and municipalities directly under the central government shall determine the enterprises that print invoices after consultation with the tax authorities of the provinces, autonomous regions and municipalities directly under the central government. It is forbidden to print invoices abroad. Chapter III Receipt of Invoices Article 15 Units and individuals that need to receive invoices shall go through the formalities of receipt of invoices with the competent tax authorities with the establishment registration certificate or tax registration certificate and the identity certificate of the agent. Receiving paper invoices,It shall also provide the impression of the special invoice seal made according to the pattern specified by the competent tax department of the State Council. The competent tax authorities shall, according to the business scope, scale and risk level of recipients, confirm the types, quantities and methods of recipients’ invoices within 5 working days. When receiving invoices, units and individuals shall report the use of invoices in accordance with the provisions of the tax authorities, and the tax authorities shall conduct inspections in accordance with the provisions. Article 16 Units and individuals that need to use invoices temporarily may directly apply to the tax authorities in the place of business for issuing invoices on the basis of written certificates of buying and selling commodities, providing or receiving services and engaging in other business activities and the identity certificate of the agent. If taxes should be paid in accordance with the provisions of tax laws and administrative regulations, the tax authorities should collect taxes first and then issue invoices. According to the needs of invoice management, the tax authorities may entrust other units to issue invoices in accordance with the provisions of the competent tax authorities in the State Council. Illegal invoicing is prohibited. Article 17 A unit or individual who temporarily engages in business activities outside the province, autonomous region or municipality directly under the Central Government shall, on the strength of the certificate of the local tax authority, receive the invoice of the place of business from the tax authority of the place of business. Measures for collecting invoices for temporary business activities across cities and counties within the province, autonomous region or municipality directly under the Central Government shall be formulated by the tax authorities of the province, autonomous region or municipality directly under the Central Government. Chapter IV Issuance and Custody of Invoices Article 18 Units and individuals that sell commodities, provide services and engage in other business activities shall collect money from foreign business operations, and the payee shall issue invoices to the payer;Under special circumstances, the payer will issue an invoice to the payee. Nineteenth all units and individuals engaged in production and business activities shall obtain invoices from the payee when purchasing goods, receiving services and engaging in other business activities. When obtaining an invoice, it is not allowed to change the name and amount. Twentieth invoices that do not meet the requirements shall not be used as financial reimbursement vouchers, and any unit or individual has the right to refuse. Twenty-first invoices shall be issued in accordance with the prescribed time limit, sequence and columns, all of which shall be issued in one lump sum, and paper invoices shall be stamped with special invoices. No unit or individual may commit the following acts of falsely issuing invoices: (1) Issuing invoices for others and for themselves that are inconsistent with the actual business conditions; (two) let others issue invoices for themselves that are inconsistent with the actual business situation; (three) introduce others to issue invoices that are inconsistent with the actual business situation. Twenty-second units and individuals that install tax control devices shall use tax control devices to issue invoices in accordance with the provisions, and submit the invoice data to the competent tax authorities on schedule. Where non-tax-controlled electronic devices are used to issue invoices, the software program description data of non-tax-controlled electronic devices shall be reported to the competent tax authorities for the record, and the invoice data shall be kept and submitted in accordance with the regulations. Units and individuals that develop electronic invoice information systems for their own use or provide electronic invoice services for others shall abide by the provisions of the competent tax authorities of the State Council.Article 23 Any unit or individual shall use invoices in accordance with the provisions on invoice management, and shall not commit any of the following acts: (1) Lending, transferring or introducing others to transfer invoices, invoice producer seals and special anti-counterfeiting products for invoices; (2) Receiving, issuing, storing, carrying, mailing or transporting invoices that are printed, forged, altered, illegally obtained or abolished without authorization; (three) the use of invoices; (4) Expanding the scope of use of invoices; (5) Use other vouchers instead of invoices; (6) Stealing, intercepting, tampering, selling or disclosing invoice data. The tax authorities shall provide convenient channels for inquiring the authenticity of invoices. Twenty-fourth except for special circumstances stipulated by the competent tax authorities in the State Council, paper invoices are limited to recipients and individuals in the province, autonomous regions and municipalities directly under the central government. The tax authorities of provinces, autonomous regions and municipalities directly under the Central Government may prescribe measures for issuing paper invoices across cities and counties. Twenty-fifth except for special circumstances stipulated by the competent tax authorities of the State Council, no unit or individual may carry, mail or transport blank invoices across the prescribed use areas. It is forbidden to carry, mail or transport blank invoices into or out of the country. Twenty-sixth units and individuals that issue invoices shall establish a registration system for the use of invoices, cooperate with the tax authorities for identity verification, and regularly report the use of invoices to the competent tax authorities. Twenty-seventh units and individuals that issue invoices shall go through the formalities of changing or canceling the tax registration at the same time.Twenty-eighth units and individuals that issue invoices shall store and keep invoices in accordance with relevant state regulations, and shall not damage them without authorization. Stubs of invoices that have been issued shall be kept for 5 years. Chapter V Inspection of Invoices Article 29 The tax authorities have the right to conduct the following inspections in invoice management: (1) Check the printing, receiving, issuing, obtaining, keeping and cancellation of invoices; (2) Inspection of transferred-out invoices; (3) Consulting and copying vouchers and materials related to invoices; (4) Asking the parties about issues and situations related to invoices; (five) when investigating and handling invoice cases, you can record, record, video, photograph and copy the information and materials related to the case. Thirtieth units and individuals that print and use invoices must accept the inspection by the tax authorities according to law, truthfully reflect the situation and provide relevant information, and may not refuse or conceal it. Tax officials shall show their tax inspection certificates when conducting inspections. Article 31 When the tax authorities need to transfer the issued invoices out for inspection, they shall issue invoices to the inspected units and individuals to exchange tickets. The invoice exchange certificate has the same effect as the invoice transferred out for inspection. Units and individuals who have been transferred out to check invoices shall not refuse to accept them. When the tax authorities need to transfer blank invoices out for inspection, they shall issue receipts; If there is no problem after investigation, it shall be returned in time. Article 32 If the tax authorities have doubts about the invoices or vouchers related to tax payment obtained by units and individuals from outside China,They may be required to provide confirmation certificates from overseas notaries or certified public accountants, which can only be used as vouchers for accounting after being examined and approved by the tax authorities. Chapter VI Penalty Provisions Article 33 If anyone violates the provisions of these Measures in any of the following circumstances, the tax authorities shall order him to make corrections and may impose a fine of less than 10,000 yuan; Illegal income shall be confiscated: (1) invoices should be issued but not issued, or invoices are not issued in a lump sum in accordance with the prescribed time limit, sequence and columns, or special invoices are not stamped; (two) using the tax control device to issue invoices, and failing to submit the invoice data to the competent tax authorities on schedule; (3) using non-tax-controlled electronic devices to issue invoices, failing to report the software program description data used by non-tax-controlled electronic devices to the competent tax authorities for the record, or failing to save and submit the invoice data in accordance with regulations; (four) the use of invoices; (5) Expanding the scope of use of invoices; (6) Using other vouchers instead of invoices; (7) Invoicing across prescribed areas; (8) Failing to pay the cancellation invoices in accordance with the provisions; (9) Failing to store and keep invoices in accordance with regulations. Article 34 Whoever carries, mails or transports blank invoices across the prescribed use areas, or carries, mails or transports blank invoices into or out of the country, shall be ordered by the tax authorities to make corrections and may be fined not more than 10,000 yuan; If the circumstances are serious, a fine of not less than 10 thousand yuan but not more than 30 thousand yuan shall be imposed; Illegal income shall be confiscated. Lost invoices or damaged invoices without authorization,Punish in accordance with the provisions of the preceding paragraph. Thirty-fifth in violation of the provisions of these measures, the tax authorities shall confiscate the illegal income; If the amount of false issuance is less than 10,000 yuan, a fine of less than 50,000 yuan may be imposed; If the amount of false issuance exceeds 10,000 yuan, a fine of 50,000 yuan to 500,000 yuan shall be imposed; If a crime is constituted, criminal responsibility shall be investigated according to law. Whoever issues invoices illegally shall be punished in accordance with the provisions of the preceding paragraph. Article 36 Whoever prints, forges or alters invoices privately, illegally manufactures special products for anti-counterfeiting of invoices, forges invoices’ producer seals, and steals, intercepts, falsifies, sells or divulges invoice data, the tax authorities shall confiscate the illegal income, confiscate and destroy tools and illegal articles, and impose a fine of not less than 10,000 yuan but not more than 50,000 yuan; If the circumstances are serious, a fine of not less than 50,000 yuan but not more than 500,000 yuan shall be imposed; If a crime is constituted, criminal responsibility shall be investigated according to law. The punishment prescribed in the preceding paragraph shall be implemented in accordance with the provisions of the Law of People’s Republic of China (PRC) Municipality on the Administration of Tax Collection. Article 37 In any of the following circumstances, the tax authorities shall impose a fine of not less than 10,000 yuan but not more than 50,000 yuan; If the circumstances are serious, a fine of not less than 50,000 yuan but not more than 500,000 yuan shall be imposed; Illegal income shall be confiscated: (1) Lending, transferring or introducing others to transfer invoices, invoices producer seals and special anti-counterfeiting products for invoices; (2) Accepting, issuing, storing, carrying, mailing or transporting invoices that are printed, forged, altered, illegally obtained or abolished without authorization.Thirty-eighth units and individuals who violate the provisions on invoice management for more than two times or if the circumstances are serious, the tax authorities may announce to the public. Article 39 In case of violation of the laws and regulations on invoice management, resulting in non-payment, underpayment or fraudulent tax payment by other units or individuals, the illegal income shall be confiscated by the tax authorities, and a fine of less than 1 time of the unpaid, underpaid or fraudulent tax may be imposed. Article 40 If a party refuses to accept the punishment decision of the tax authorities, he may apply for administrative reconsideration or bring an administrative lawsuit to the people’s court according to law. Article 41 Tax officials who take advantage of their functions and powers to deliberately make things difficult for units and individuals who print and use invoices, or who violate the laws and regulations on invoice management, shall be punished in accordance with the relevant provisions of the state; If a crime is constituted, criminal responsibility shall be investigated according to law. Chapter VII Supplementary Provisions Article 42 The competent tax authorities in the State Council may, in accordance with the special business methods and business needs of the relevant industries, formulate measures for the administration of invoices in conjunction with the relevant competent departments in the State Council. The competent tax authorities in the State Council may, according to the special needs of the management of special VAT invoices, formulate specific measures for the management of special VAT invoices. Article 43 These Measures shall come into force as of the date of promulgation. The Interim Measures for the Administration of National Invoices issued by the Ministry of Finance in 1986 and the Interim Provisions on the Administration of Invoices for Enterprises with Foreign Investment and Foreign Enterprises issued by the former State Taxation Bureau in 1991 shall be abolished at the same time.