Page 8 - The South China Business Journal
P. 8
NA BRIEFING CFhaipniAaafo’fseRcNteeqTPwuarioVxrpAveiaTmdyeeernrssts&hina’s
toService CState
General VAT Special VAT fapiao
Administration of Taxa-fapiao
tion (SAT) has released new require- Correct buyer’s full
ments for collecting VAT fapiao, which are information on the upper
left side, including Chinese
special tax invoices. Company’s full company name, tax ID code
Chinese name or unified social credit code,
address, telephone number,
The policy, which will come into effect on July 1, 2017, will bank name and account
change the type of information taxpayers need to provide when number.
obtaining a general VAT fapiao. It also specifies measures fa- Tax ID code or unified Fapiao passcode printed
piao issuers (service providers) need to take to be compliant. social credit code accurately within correct grid
field
Both taxpayers and vendors should study the new general fa- Fapiao content Commodity and service tax
piao rules to understand how it affects business as usual: consistent with actual breakdown printed clearly
• Service providers need to sync their internal systems with the transaction situation
SAT’s VAT control system to ensure that there are no errors Fapiao content consistent
made when issuing fapiao after July 1. Issuer’s special fapiao with actual transaction
chop situation
Issuer’s special fapiao chop
• Taxpayers need to review the new rules to understand how
their employers and service providers will treat fapiao; the new Fapiao issued without the above information will not be seen
rules increase accountability for taxpayers. as a valid tax payment receipt. This means that it cannot be
• Employers should task their human resources and finance used as a means to deduct from corporate income tax (CIT),
teams to inform employees about the reform and develop new or VAT (in cases where taxpayers are engaging in labor dis-
standard operating procedures for the reimbursement of busi- patch, HR outsourcing, or tourism services, where the taxpay-
ness expenses. er chooses to pay VAT on the difference between revenue and
expense fees).
The Fapiao Reform
Fapiao issuers will be required to link their service systems
Under the current system, taxpayers are only required to sup- with the SAT’s VAT control system, meaning that all fapiao is-
ply their company’s full listed name in Chinese in order for sued will only be valid if the data is coherent in both systems.
suppliers to issue a valid fapiao. Issuers with discrepancies will need make due amendments to
their service systems.
When the new law comes into effect on July 1, the following
items are required when requesting fapiao:
6
toService CState
General VAT Special VAT fapiao
Administration of Taxa-fapiao
tion (SAT) has released new require- Correct buyer’s full
ments for collecting VAT fapiao, which are information on the upper
left side, including Chinese
special tax invoices. Company’s full company name, tax ID code
Chinese name or unified social credit code,
address, telephone number,
The policy, which will come into effect on July 1, 2017, will bank name and account
change the type of information taxpayers need to provide when number.
obtaining a general VAT fapiao. It also specifies measures fa- Tax ID code or unified Fapiao passcode printed
piao issuers (service providers) need to take to be compliant. social credit code accurately within correct grid
field
Both taxpayers and vendors should study the new general fa- Fapiao content Commodity and service tax
piao rules to understand how it affects business as usual: consistent with actual breakdown printed clearly
• Service providers need to sync their internal systems with the transaction situation
SAT’s VAT control system to ensure that there are no errors Fapiao content consistent
made when issuing fapiao after July 1. Issuer’s special fapiao with actual transaction
chop situation
Issuer’s special fapiao chop
• Taxpayers need to review the new rules to understand how
their employers and service providers will treat fapiao; the new Fapiao issued without the above information will not be seen
rules increase accountability for taxpayers. as a valid tax payment receipt. This means that it cannot be
• Employers should task their human resources and finance used as a means to deduct from corporate income tax (CIT),
teams to inform employees about the reform and develop new or VAT (in cases where taxpayers are engaging in labor dis-
standard operating procedures for the reimbursement of busi- patch, HR outsourcing, or tourism services, where the taxpay-
ness expenses. er chooses to pay VAT on the difference between revenue and
expense fees).
The Fapiao Reform
Fapiao issuers will be required to link their service systems
Under the current system, taxpayers are only required to sup- with the SAT’s VAT control system, meaning that all fapiao is-
ply their company’s full listed name in Chinese in order for sued will only be valid if the data is coherent in both systems.
suppliers to issue a valid fapiao. Issuers with discrepancies will need make due amendments to
their service systems.
When the new law comes into effect on July 1, the following
items are required when requesting fapiao:
6
