China to Implement Special VAT E-invoice
On 20 December 2020, the State Taxation Administration of the PRC released a circular to implement special VAT electronic invoice among newly established and registered taxpayers (hereinafter referred to as new taxpayers) throughout the country. The main contents of the circular are as follows:
- Starting from 21 December 2020, special VAT electronic invoice will be implemented among new taxpayers in 11 regions, including Tianjin, Hebei, Shanghai, Jiangsu, Zhejiang, Anhui, Guangdong, Chongqing, Sichuan, Ningbo and Shenzhen.
- Starting from 21 January 2021, special VAT electronic invoice will be implemented among new taxpayers in 25 regions, including Beijing, Shanxi, Inner Mongolia, Liaoning, Jilin, Heilongjiang, Fujian, Jiangxi, Shandong, Henan, Hubei, Hunan, Guangxi, Hainan, Guizhou, Yunnan, Tibet, Shaanxi, Gansu, Qinghai, Ningxia, Xinjiang, Dalian, Xiamen and Qingdao.
- Electronic signatures will replace the invoice seal of the taxpayer. The legal effect, basic usage and basic use regulations of special VAT electronic invoice are the same as those of special VAT paper invoice.
- Tax authorities will issue tax UKey to new taxpayers free of charge, and provide taxpayers with free electronic invoice issuing, invoice status query and information bulk download services through the public service platform of VAT electronic invoice.