Page 9 - The South China Business Journal
P. 9
August-September 2017
The Nature of the Fapiao Photo from bing.com
The law introduces more stringent rules relating to ‘nature of payers must submit their fapiao to the internal finance depart-
expenditure’ specified on fapiao: it stipulates that fapiao issuers ment at least 30 days ahead of the expiration date to reclaim an
are now required to specify the actual purpose of expenditure, expense.
and not to accord with that requested by customers.
Increased transparency for VAT collection
Service providers will now need to specify the purpose of the
product when issuing VAT fapiao, rather than asking the cus- The new law makes for more transparent VAT collection, and forms
tomer for thier input on the nature of the fapiao. Taxpayers, in part of China’s broader effort to reform its taxation system.
turn, will need ensure that they match the specific purpose of the
VAT fapiao for the expense that they would like to claim. As an After the successful implementation of the 2016 VAT reform,
example, taxpayers will need to use fapiao issued for accomo- issuance of special fapiao was standardized. However, that of
dation to claim accomodation expense, rather than using fapiao general fapiao was not so uniform: in some cases, fapiao issu-
issued for food expenses for accomodation expense. ers would only require the full company name to issue a fapiao,
while others would insist on varying amounts of the required
This new measure is ultimately designed to put an end to some information.
grey practices: it will become more difficult for taxpayers to re-
quest issuers to falsely write on fapiao issued for other purposes. This change in requirements ultimately means more effort will
be required by taxpayers and service providers. For individual
Validity of New and Old Fapiao taxpayers, checking the consistency of fapiao contents after is-
suance can ensure smooth reimbursement of business costs.
Taxpayers will need to retain both the special VAT fapiao de-
ductible and invoice copies, which are issued together, for va- This article was first published on China Briefing.
lidity. Authorities will not treat any special fapiao as valid if it
has not verified and filed in a VAT return within 360 days of its Since its establishment in 1992, Dezan Shira & Associates has been guiding foreign
issuance. This applies to fapiao issued after July 1. clients through Asia’s complex regulatory environment and assisting them with all
aspects of legal, accounting, tax, internal control, HR, payroll, and audit matters.
For fapiao issued before July 1, it will be non-deductible if it is As a full-service consultancy with operational offices across China, Hong Kong,
not verified within 180 days upon issuance. In either case, tax- India, and ASEAN, we are your reliable partner for business expansion in this
region and beyond.
7
The Nature of the Fapiao Photo from bing.com
The law introduces more stringent rules relating to ‘nature of payers must submit their fapiao to the internal finance depart-
expenditure’ specified on fapiao: it stipulates that fapiao issuers ment at least 30 days ahead of the expiration date to reclaim an
are now required to specify the actual purpose of expenditure, expense.
and not to accord with that requested by customers.
Increased transparency for VAT collection
Service providers will now need to specify the purpose of the
product when issuing VAT fapiao, rather than asking the cus- The new law makes for more transparent VAT collection, and forms
tomer for thier input on the nature of the fapiao. Taxpayers, in part of China’s broader effort to reform its taxation system.
turn, will need ensure that they match the specific purpose of the
VAT fapiao for the expense that they would like to claim. As an After the successful implementation of the 2016 VAT reform,
example, taxpayers will need to use fapiao issued for accomo- issuance of special fapiao was standardized. However, that of
dation to claim accomodation expense, rather than using fapiao general fapiao was not so uniform: in some cases, fapiao issu-
issued for food expenses for accomodation expense. ers would only require the full company name to issue a fapiao,
while others would insist on varying amounts of the required
This new measure is ultimately designed to put an end to some information.
grey practices: it will become more difficult for taxpayers to re-
quest issuers to falsely write on fapiao issued for other purposes. This change in requirements ultimately means more effort will
be required by taxpayers and service providers. For individual
Validity of New and Old Fapiao taxpayers, checking the consistency of fapiao contents after is-
suance can ensure smooth reimbursement of business costs.
Taxpayers will need to retain both the special VAT fapiao de-
ductible and invoice copies, which are issued together, for va- This article was first published on China Briefing.
lidity. Authorities will not treat any special fapiao as valid if it
has not verified and filed in a VAT return within 360 days of its Since its establishment in 1992, Dezan Shira & Associates has been guiding foreign
issuance. This applies to fapiao issued after July 1. clients through Asia’s complex regulatory environment and assisting them with all
aspects of legal, accounting, tax, internal control, HR, payroll, and audit matters.
For fapiao issued before July 1, it will be non-deductible if it is As a full-service consultancy with operational offices across China, Hong Kong,
not verified within 180 days upon issuance. In either case, tax- India, and ASEAN, we are your reliable partner for business expansion in this
region and beyond.
7
