After the Change from Business Tax to the Value-Added Tax, value-added tax invoice dominates in the whole industry. The process of making out the value-added tax invoice becomes even more complex. Basically, it is very difficult for this policy as the economic business of all industries will be reflected by this invoice. Typically, with the cancellation of the invoice from some specific industries like architecture industry uniform invoice, Freight transport invoice, insurance industry invoice and etc., there is no place to state a huge amount of specific information with these industries.

 

Under this circumstance, ‘the reference column’, which had not been noticed by the most, comes out and takes effect under the crunch time in terms of undertaking a huge amount of work related to information disclosure. The following context will state how to fill out the reference column correctly.

 

  1. Where a taxpayer of VAT is subject to tax on the differential amount pursuant to the prevailing policies and provisions and is not allowed to issue a VAT invoice for the full amount (unless otherwise stipulated by the Ministry of Finance and the State Administration of Taxation), when the taxpayer issues a VAT invoice on its own or applies to the tax authorities to issue a VAT invoice on its behalf, it shall enter the sales amount inclusive of tax (or valuation amount inclusive of tax) and the deducted amount through the invoicing function for tax levied on differential amount in the new system, the system shall automatically compute the tax amount and amount exclusive of tax, and the words "tax levied on differential amount" shall be automatically inserted in the remarks column, the invoice shall not include other taxable acts.

 

 

 

 

 

 

No matter the invoice is issued by the taxpayer or the special VAT invoice is issued by Tax authorities, the contents to be filled in the reference column are clearly defined. If they are not filled out as required, they are non-compliant invoices and cannot be used as deduction certificates.

This article was created on: 2018.12.19