State Taxation Administration of The People’s Republic of China interprets the first application for VAT invoices by newly-established taxpayers.

Data map: VAT electronic ordinary invoice. (Photo courtesy of Zhejiang Provincial State Taxation Bureau) Photo by Zhong Xin, a reporter from China News Service

　　BEIJING, June 14 (Xinhua) According to the website of State Taxation Administration of The People’s Republic of China, the General Office of State Taxation Administration of The People’s Republic of China released a document today to interpret the Announcement of State Taxation Administration of The People’s Republic of China on Matters Related to the First Application of VAT Invoices by Newly-established Taxpayers. The full text is as follows:

　　— — What is the background of this announcement?

　　In order to further deepen the "streamline administration, delegate power, strengthen regulation and improve services" reform of the tax system, optimize the tax business environment, and facilitate newly-established taxpayers to apply for VAT invoices for the first time, according to the requirements of the State Council on further shortening the start-up time of enterprises, the State Administration of Taxation issued this announcement to shorten the time for newly-established taxpayers to apply for VAT invoices for the first time.

　　— — How long can it take for newly-established taxpayers to apply for VAT invoices for the first time?

　　At the same time, when a newly-established taxpayer who meets the following conditions applies for a VAT invoice for the first time, the competent tax authorities shall complete it within 2 working days from the date of accepting the application, and the competent tax authorities with conditions shall complete it on the same day:

　　(a) the taxpayer’s tax personnel and legal representative have collected and verified the real-name information (the scope of taxpayers who need to collect and verify the real-name information of the legal representative is determined by the provincial tax authorities);

　　(two) taxpayers have the need to issue VAT invoices and take the initiative to apply for invoices;

　　(three) taxpayers in accordance with the provisions of the tax control equipment distribution and other matters.

　　— — What tax-related matters do newly-established taxpayers mainly include when applying for VAT invoices for the first time?

　　Newly-established taxpayers applying for VAT invoices for the first time mainly include tax-related matters such as the verification of invoice types, the examination and approval of the maximum invoicing limit of special VAT invoices (VAT tax control system), the initial issuance of special equipment for VAT tax control system, and the receipt of invoices.

　　— — For the first time, a newly-established taxpayer applies for a VAT invoice. What is the maximum billing limit and the maximum number of recipients per month?

　　The tax authorities shall verify the invoice types for newly-established taxpayers who apply for VAT invoices for the first time as stipulated in Article 1 of this announcement. The maximum invoicing limit of special VAT invoices shall not exceed 100,000 yuan, and the maximum number of recipients per month shall not exceed 25; The maximum invoice value-added tax invoice is no more than 100,000 yuan, and the maximum number of recipients per month is no more than 50. The provincial tax authorities can, within this range, determine the approval criteria for the first application of VAT invoices by newly-established taxpayers according to the degree of tax risk of taxpayers.

　　— — When will this announcement come into force?

　　In areas other than Xinjiang, Qinghai and Tibet, this announcement shall come into force on August 1, 2018; Xinjiang, Qinghai and Tibet will come into force on October 1, 2018.